Axis Mutual Fund Receives Legal Notice From Its Former Fund Manager

Viresh Joshi, the equity dealer and fund manager of Axis Asset Management Company who was a part of six mutual fund schemes was terminated for alleged malpractice, and sent a legal notice against Axis Mutual Fund firm stating ‘wrongful termination. According to Axis Mutual Fund, he was first suspended and was later released from his position on May 18th for his hypothetical role which created an in-house investigation in this matter.

Mr. Joshi hired Mansukhlal Hiralal & Company, a Mumbai – based law firm to speak for his case against AMF. Within a couple of days of his termination, the legal notice was sent to the mutual fund firm. Two legal notices were sent to the fund house. One was on May 6th after his suspension and the other was sent on May 20th after his termination.


What’s the story?

Deepak Agarwal, another fund manager of AMF was also terminated on 20th May by an identical statement by the firm. In the legal notice, Mr Joshi asked for the relevant sections of the code of conduct he has dishonored and also wanted justifications of how he have done so. A basic report on the ‘front-running’ scam was prepared on May 4th by AMF and on the basis of that Joshi and Agarwal was suspended. The report stated that Mr. Joshi and Mr. Agarwal had unreasonable assets in comparison to their known source of income.

According to the published report of Economic Times, AMF signed up Deloitte as a second investigator in the front-running case after the fund intensified the scope of inquiry.


The case is invested by Securities and Exchange Board of India (SEBI) and is distinct from the examination done by the fund house. The Governor of SEBI has asked for the reports related to the investment so that they can go through the possible connection between the brokers and the fund managers for the ‘front-running’ of the stocks.

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