Frontal fraud case related to Axis Mutual Fund
Kolkata. The Enforcement Directorate (ED) of the Mumbai Zonal Office conducted a search operation under the Foreign Exchange Management Act (FEMA), 1999 at various locations in Kolkata and Mumbai as part of the ongoing investigation into a front running scam in relation to Axis Mutual Fund. During the search operation, movable assets worth approximately Rs 12.96 lakh in foreign currency (GBP/EUR/AED) were seized. Various incriminating documents and digital devices relating to foreign immovable properties and foreign bank accounts were seized. On the basis of the interim order passed by SEBI, ED has initiated an investigation against Viresh Joshi and others alleging wrongful gain of around Rs 30.56 crore. Front running is a term used in the securities market to describe the practice where a broker or a trader executes orders in a security on his own account by taking advantage of advance information of pending orders of his clients. This practice is considered unethical and illegal as it undermines the integrity of the market.
And it hurts other investors. During the ED investigation, evidence was found that exposes the modus operandi of the main scam. In this case, Viresh Joshi was allegedly sharing market-sensitive information in exchange for bribes from brokers with terminals in Dubai who could execute trades on his instructions.
Disclaimer: This is the automated news feed of Prabhat Khabar newspaper. This has not been edited by the Prabhat Khabar.com team.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.