Viresh Joshi, a former chief merchant and fund manager at Axis Mutual Fund, was arrested under the anti-whiteness law for having allegedly defrauded investors with more than 200 crores thanks to the trades on the front, said the management of the law application (ED) on August 3.
A special PMLA court dismissed Joshi, who was placed in police custody on Saturday at August 8, the agency said.
The first cycle is an illegal practice where traders use prior knowledge of customer orders to execute transactions for personal purposes. This undermines the equity of the market and the drawbacks of other investors.
The urgency began research on August 1 in places, including Delhi, Mumbai, Gurugram, Ludhiana, Ahmedabad, Bhavnagar, Bhuj and Kolkata.
The agency investigated the case under FEMA provisions, following a previous investigation into the income tax department in 2022.
“Research operations were part of an ongoing survey on the illegal profits carried out by certain entities / people by engaging in leading commercial activities in the scripts negotiated by Axis Mutual Fund from 2018 to 2021,” said the urgency.
The money laundering case is based on a December 2024 FIR tabled by Mumbai police. He allegedly alleged that Joshi, as a Mutual Fund axis fund manager, has exploited confidential trade information to execute advanced transactions, ratifying important illicit gains.
Depending on the urgency, Joshi has “cheated” investors in the Axis common fund, which manages assets worth more than 2 Lakh crores.
“The accused had used a terminal in Dubai to strike the leading commercial orders through mules trading accounts obtained from various brokers,” added the agency.
The survey also revealed that several traders and brokers have abused initiate information in the businesses of the axis common fund, collectively generating more than 200 illegal profits – a figure that could increase as the survey is increasing.
ED said that fraudulent gains had been sent through several shell entities and bank accounts related to the accused and their families.
The assets worth 17.4 crosses, including shares, investment funds and banking sales, were frozen during searches.
(With PTI entries)
