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ED arrests ex-Axis fund manager in Rs 200-crore front-running case

Front-running refers to an illegal practice in the securities market in which brokers or traders execute orders for their own benefit using advance knowledge of pending client orders

“He cheated the investors of Axis Mutual Fund which holds assets under management of more than Rs two lakh crore,” a ED spokesperson said in a statement (File)

The Enforcement Directorate (ED) has arrested Viresh Joshi, a former chief trader and fund manager of Axis Mutual Fund, for allegedly cheating investors of around `200 crore through front-running.

Front-running refers to an illegal practice in the securities market in which brokers or traders execute orders for their own benefit using advance knowledge of pending client orders. This malpractice compromises market integrity and disadvantages other investors.

Joshi was arrested on August 2 and was produced before a Prevention of Money Laundering Act (PMLA) court which granted the ED his custody till August 8.

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The ED initiated its investigation on the basis of an FIR registered by Mumbai Police in December 2024, which alleged that Joshi exploited confidential information on the trades to be executed on behalf of Axis Mutual Fund to preemptively trade stocks, generating substantial illicit gains.

“He cheated the investors of Axis Mutual Fund which holds assets under management of more than Rs two lakh crore,” a ED spokesperson said in a statement.

“Joshi had utilised a terminal in Dubai to punch the front running trade orders through mule trading accounts obtained from various brokers… many other traders/brokers had also misused the advance inputs on Axis Mutual Fund Trades and indulged in front running to generate illicit trade profits,” the ED said. The proceeds of crime could be much higher than `200 crore, it said.

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