Axis Mutual Funds suspend two senior executives

Two senior executives of the Axis Mutual Fund have been sent on leave for being accused of insider trading or front running. The Securities and Exchange Board of India had investigated the two of them and found out that Viresh Joshi, the fund manager and Deepak Agrawal, a dealer, were the culprits for front running.

Front running is when the broker reveals details about the stocks that are being bought/sold in large quantities and trades these stocks to benefit from them. This practise is illegal in India. The probe conducted by SEBI revealed that the transactions by the two accused were conducted over the past 4-5 years with other team members. The company had sent both of them on an indefinite leave till the investigation is over when the issue came to light.