Viresh Joshi, one of two fund managers at the MF company under investigation for inappropriate behavior, has been fired by Axis Mutual Fund. Joshi, the MF's top trader, fund manager, and another fund manager, Deepak Agarwal, were both under investigation for alleged front-running and insider trading.
The fund house had previously stated that it will conduct an inquiry into the claims with the help of an outside agency, and the two had been suspended.
Axis MF said late Wednesday that the company has been conducting an internal probe since February. "Further to our inquiry, (Joshi's) behavior, and after the decision to suspend him, Viresh Joshi's employment has been terminated with effect from May 18, 2022, and he will have no further involvement with Axis AMC and Axis Mutual Fund." As a result, Joshi is no longer a significant figure at Axis AMC, according to a statement.
There have been rumors regarding the inappropriate behavior of at least two Axis MF fund managers since early this month. These related to recent changes in their lifestyle, such as one of them driving about the city in one of the most luxury imported vehicles available. The rumors also mentioned some unethical behavior by these fund managers, which resulted in significant losses for the investors in the MFs handled by the two.
Furthermore, there has been market speculation that Sebi has launched an investigation into the matter. Previously, Axis MF had not replied to TOI's inquiries on a Sebi inquiry.