The Enforcement Directorate (ED) on Wednesday alleged that former Axis Mutual Fund chief trader and fund manager Viresh Joshi shared sensitive market information with brokers having terminals in Dubai in exchange for 'bribes' as part of a front-running 'scam'. Let us tell you that front running is an illegal method by which the fund manager knows in advance about the upcoming big trade. On this basis, they place orders first and make huge profits. The investigating agency said in a statement that it raided various places in Mumbai and Kolkata on September 9 during an investigation under the Foreign Exchange Management Act (FEMA) about Axis Mutual Fund. It said, "Movable assets worth Rs 12.96 lakh in the form of foreign currencies like pounds, euros and dirhams, various objectionable documents related to immovable properties abroad, foreign bank accounts and digital devices were seized." 

Joshi was also raided in 2022

The Income Tax Department had also raided Joshi in the same case in August 2022. The ED action was triggered by an interim order passed by the Securities and Exchange Board of India (SEBI). In this, Joshi and others were accused of 'front running' business to earn a wrongful profit of Rs 30.56 crore. Sharing sensitive or unpublished information about the company to someone to earn unethical profit is called a 'front running' business.

Investors suffer losses 

According to the ED, this is considered unethical and illegal as it dilutes the market and harms other investors. According to the ED, "Joshi was allegedly sharing sensitive information in exchange for bribes from a broker having a terminal in Dubai, who could execute the trade on his instructions."