Mumbai: Axis Mutual Fund said on Tuesday that the conduct of two of its former employees had been asked to leave fund house There was no impact on its plans or the liquidity of its operations. The fund house reiterated that barring the two fund managers who were sacked, all top executives continue to play their roles.
In May this year, Axis MF had sacked two of its fund managers while the misconduct of both was under detailed investigation. The fund house said that the two sacked employees Viresh Joshi and Deepak Agarwal – were found to be in violation of securities law, but their conduct shall have no effect on its operation.
It was alleged that the two fund managers had made illegal profits by front-running – that is, trading in securities in their own accounts or in the accounts of close associates before funds managed by them. The fund house had launched an internal probe in February this year. The findings of the investigation have been shared with the market regulator SEBI, it said. On Tuesday, Axis MF said that based on its “detailed and thorough” investigation, it believed the conduct of both the fund managers had violated securities laws.
In May this year, Axis MF had sacked two of its fund managers while the misconduct of both was under detailed investigation. The fund house said that the two sacked employees Viresh Joshi and Deepak Agarwal – were found to be in violation of securities law, but their conduct shall have no effect on its operation.
It was alleged that the two fund managers had made illegal profits by front-running – that is, trading in securities in their own accounts or in the accounts of close associates before funds managed by them. The fund house had launched an internal probe in February this year. The findings of the investigation have been shared with the market regulator SEBI, it said. On Tuesday, Axis MF said that based on its “detailed and thorough” investigation, it believed the conduct of both the fund managers had violated securities laws.