Axis MF front-running case: ED conducts searches in Mumbai, Kolkata

The Enforcement Directorate (ED) has seized properties and foreign currencies worth almost Rs 13 lakh in connection with the front-running investigation at c. The seizures were made during searches conducted on September 9 at various locations in Mumbai and Kolkata under the Foreign Exchange Management Act (Fema). The ED found and seized movable properties, including foreign currencies (GBP/Euro/AED), incriminating documents related to overseas immovable properties and bank accounts, and digital devices. The investigation stems from a Securities and Exchange Board of India (Sebi) order in 2023, which barred former Axis MF fund manager Viresh Joshi and 20 other entities from the securities market for alleged front-running trades. Sebi had ordered disgorgement of Rs 30.55 crore in the matter. The ED probe is ongoing, while Joshi has moved the Securities Appellate Tribunal (SAT) for relief. Front-running involves using confidential information on institutional trades to make investment decisions, potentially impacting stock prices.