Was Viresh Joshi, the Mastermind Behind the Axis MF Scam, Arrested by the ED?
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Synopsis
The arrest of Viresh Joshi, the alleged mastermind behind the Axis Mutual Fund scam, has sent shockwaves through the financial sector. With Rs 17.4 crore in assets seized, the Enforcement Directorate's investigation highlights the impact of front-running practices on investor trust and market integrity.
Key Takeaways
- Viresh Joshi arrested under PMLA for Axis MF scam.
- Rs 17.4 crore in assets seized by the ED.
- Investigation targets front-running trading practices.
- Illicit gains from the scam may exceed Rs 200 crore.
- Integrity of the financial market is at stake.
New Delhi, Aug 3 (NationPress) In a significant development regarding the investigation into illicit trading activities linked to Axis Mutual Fund, the Enforcement Directorate (ED) has apprehended the alleged mastermind Viresh Joshi. During extensive searches across various cities, the agency seized assets amounting to Rs 17.4 crore in the form of shares, mutual funds, and bank balances, as reported on Sunday.
Joshi, who previously served as the Chief Dealer at Axis Mutual Fund, was taken into custody on Saturday under the Prevention of Money Laundering Act (PMLA), 2002.
Following his arrest, he was presented before the Competent Court, which has granted the ED custody until August 8, according to an official statement.
The ED's operations took place on Friday and Saturday in multiple cities including Delhi, Mumbai, Gurugram, Ludhiana, Ahmedabad, Bhavnagar, Bhuj, and Kolkata.
This investigation focuses on the illicit profits accrued by various entities through front-running trading activities involving stocks traded by Axis Mutual Fund between 2018 and 2021.
The ED's inquiry was initiated following an FIR lodged by the Mumbai Police in December 2024, which claimed that Viresh Joshi, then the Fund Manager, misused confidential trading information to execute pre-emptive stock trades, resulting in considerable illegal gains.
As a result, investors of Axis Mutual Fund, which manages assets exceeding Rs 2 lakh crore, have been defrauded, stated the ED.
Utilizing a terminal located in Dubai, Joshi allegedly placed front-running orders via mule trading accounts procured from various brokers.
In addition to Joshi, the investigation has uncovered that numerous other traders and brokers exploited advanced insights from Axis Mutual Fund's trades to engage in front-running, thereby generating illicit profits, which the ED categorizes as proceeds of crime (POC).
To date, the ED has identified more than Rs 200 crore in POC generated by various traders and brokers, a figure that could potentially rise.
The proceeds from these fraudulent activities were channeled through numerous shell companies and bank accounts owned by the accused and their families, which are under scrutiny by the ED.
Front-running is deemed an unethical and illegal practice in the securities market, where brokers or traders execute orders for personal gain by leveraging advanced knowledge of pending client orders, ultimately undermining market integrity and harming other investors.
Point of View
I believe that the arrest of Viresh Joshi sheds light on the dark corners of the financial industry. The integrity of our markets is paramount, and the actions of a few should not tarnish the reputation of many honest investors and managers. It is crucial that we hold individuals accountable while ensuring that investor confidence is restored.
NationPress
20/08/2025
Frequently Asked Questions
What led to the arrest of Viresh Joshi?
Viresh Joshi was arrested as part of an ongoing investigation into illegal trading activities linked to Axis Mutual Fund, particularly concerning front-running practices that exploited confidential trading information.
How much money was seized during the investigation?
The Enforcement Directorate seized assets worth Rs 17.4 crore, which included shares, mutual funds, and bank balances.
What is front-running?
Front-running is an unethical practice where brokers or traders execute orders for their own benefit by using advanced knowledge of pending client orders, compromising market integrity.
What are the implications of this scam for investors?
The implications are significant as they undermine investor trust and highlight the need for stronger regulations to protect investors from fraudulent activities.
Are other traders involved in this case?
Yes, the investigation has revealed that multiple other traders and brokers also engaged in front-running activities related to Axis Mutual Fund.
