Front-Running Scandal: Axe Falls on Axial Mismanagement
Viresh Joshi, former Axis Mutual Fund manager, was arrested for allegedly cheating investors through 'front-running', with Rs 2 lakh crore involved. The ED conducted extensive searches, revealing illicit profits and misuse of confidential info to preemptively trade stocks. The probe involves numerous brokers and significant amounts, with assets frozen.

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- India
Viresh Joshi, a key figure in the financial trading world and former Axis Mutual Fund manager, was arrested due to suspicions of defrauding investors via a practice called 'front-running'. This fraudulent activity reportedly cheated investors of Rs 2 lakh crore, leading to action from the Enforcement Directorate (ED).
The ED, employing the provisions of the Prevention of Money Laundering Act (PMLA), detained Joshi, and he will remain in custody until early August. Investigations have expanded, targeting various locations to uncover evidence of the deceitful trading activities that occurred between 2018 and 2021.
The financial probe traces back to a First Information Report (FIR) filed by Mumbai Police, with investigations indicating a network of traders exploiting sensitive trade information for personal gain. The ED froze assets worth Rs 17.4 crore amidst discovering a wide nexus of illicit trade activities and hidden financial flows through numerous shell companies.
(With inputs from agencies.)
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