Former Axis MF Manager Arrested in ₹200 Crore Scam
The Enforcement Directorate (ED) has arrested Viresh Gangaram Joshi, the former chief trader and fund manager at Axis Mutual Fund, on charges of front‑running and money laundering. He has been remanded in ED custody until August 8, 2025 by a court under the Prevention of Money Laundering Act (PMLA).
Alleged Scam Involves Investor Losses
According to the ED, Joshi allegedly abused his access to confidential trade orders placed by Axis Mutual Fund between 2018 and 2021. Using insider information, he placed ahead-of-client orders via proxy accounts and a Dubai-based trading terminal. The scheme reportedly defrauded investors of over ₹200 crore, though final figures may rise as the probe continues.
Multi-City Raids and Asset Freeze
ED officers conducted raids in eight cities—including Delhi, Mumbai, Gurugram, Ludhiana, Ahmedabad, Bhavnagar, Bhuj, and Kolkata—on August 1 and 2, 2025. They uncovered evidence of shell companies and mule accounts linked to Joshi and associates. Assets worth ₹17.4 crore were frozen, comprising shares, mutual funds, and bank balances.
Widening Investigation Into Market Abuse
Investigators revealed that several other traders and brokers also misused advance trade data from Axis Mutual Fund, generating illicit gains. The probe, which began in late 2024 following an FIR by Mumbai Police, has expanded to include multiple individuals across the securities market.
The ED is now examining transaction trails, banking records, and corporate structures to uncover further wrongdoing and assess links to larger networks.
Impact on Market Trust and Regulation
Front-running is widely regarded as a serious breach of trust, allowing insiders to profit at the expense of ordinary investors. This case raises broader concerns about transparency and ethics in mutual fund operations and securities trading.
With assets under management totalling more than ₹2 lakh crore, Axis Mutual Fund dismissed Joshi in 2022 after detecting irregular trading patterns. Regulators and investors continue to await further developments as the investigation progresses.
