SEBI impounds ₹30.56 crore in Axis Mutual Fund front-running case

This is a final order by SEBI regarding the front-running of trades for Axis Mutual Fund, where SEBI found that a Chief Dealer shared non-public information to place profitable trades in other accounts before the fund's orders were executed.

Who it concerns: Mr. Viresh Joshi, Mr. Sumit Desai, Mr. Pranav Vora, Mr. Vaibhav Pandya, Mr. Prijesh Kurani, Ms. Dharini Kurani, Ms. Rekha Kurani, Ms. Bharti Navnit Godaya, M K B Bespoke Audio General, Mr. Bindesh Kurani, Mr. Nishil Surendra Marfatia, Olga Trading Pvt. Ltd., Mr. Krunal Khamar, Mr. Kamlesh Arjundas Dhanrajani, Mr. Bhavin Shah, Ms. Rupal Bhavin Shah, Visa Capital Partners, Mr. Suresh K Jajoo, Ms. Vimla S Jajoo, Mr. Ankit Jajoo, and Ms. Sheepra Sumeet Kabra.

What SEBI found or ordered

• SEBI found that Mr. Viresh Joshi shared non-public information about Axis Mutual Fund orders with Mr. Prijesh Kurani.
• SEBI found that Mr. Prijesh Kurani placed front-running trades in the accounts of 9 other noticees (conduit/mule accounts) from Dubai.
• SEBI calculated the total unlawful gains at INR 30,55,89,668.96.
• SEBI noted that profits were transferred via cash and 'Angadias' (unofficial couriers) to Mr. Sumit Desai and then to Mr. Viresh Joshi.
• The order addresses violations of the SEBI Act and PFUTP Regulations.

Also in the document

• The investigation period covered September 1, 2021, to March 31, 2022.
• The alleged scheme involved cross-border coordination, with Mr. Prijesh Kurani based in Dubai placing orders via ODIN terminals.
• The total amount of disgorged gains is approximately INR 30.56 Crores.
• SEBI noted that the trades followed specific Buy-Buy-Sell or Sell-Sell-Buy patterns to square off positions before the Big Client's final orders.