Enforcement agency searches Axis MF offices in front-running case
This story was originally published at 22:56 IST on 11 September 2024
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NEW DELHI – The Enforcement Directorate has seized 1.30 mln rupees of foreign currency during search operations at Axis Mutual Fund's offices in Mumbai and Kolkata as part of an ongoing probe of front-running, the agency in a release said today.
"During the course of search operations, movable properties in the form of Foreign Currencies (GBP/Euro/AED) amounting to Rs 12.96 Lakh (1.296 mln rupees), various incriminating documents pertaining to overseas immovable properties, overseas bank accounts and digital devices have been found and seized," the agency said.
The enforcement agency began its investigation after the Securities and Exchange Board of India had alleged front-running of business against former fund manager Viresh Joshi and others for earning wrongful gains of around 305.6 mln rupees.
Front-running is an illegal practice where a trader makes gains on the basis of advance knowledge of pending orders from their clients.
"During the course of ED (Enforcement Directorate) investigation, evidences have been found which unravel the modus identified in the front-running scam," the agency said. "In this case, Viresh Joshi was allegedly sharing market-sensitive information in return for kickbacks from brokers having terminal in Dubai who could execute trade on his instructions."
"Joshi used Kolkata-based operators to route the said cash in the bank accounts of multiple shell entities which in turn gave unsecured loans to Viresh Joshi, his family members and the firms/companies beneficially owned by them." End
Reported by Shubham Rana
Edited by Vidhi Verma
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