Major Settlement in Front-Running Case

In a significant development, Axis Mutual Fund, along with five other entities, has reached a settlement with the Securities and Exchange Board of India (Sebi) over a front-running case. The settlement amount totals Rs 6.3 crore, marking a pivotal moment in regulatory compliance within the Indian mutual fund industry.

Details of the Settlement

The case involved Viresh Joshi, the former head of dealing at Axis Mutual Fund, who was accused of front-running. The settlement process included the fund house, its trustee company, Chandesh Nigam (its former MD), and three others. Notably, the parties filed the settlement application on a 'suo motu' basis, demonstrating a proactive approach to resolving the matter.

Implications for the Industry

This settlement underscores the importance of transparency and ethical practices in the mutual fund sector. It serves as a reminder to all market participants about the consequences of regulatory non-compliance and the benefits of voluntary rectification.