Axis Mutual Fund changes fund management responsibilities in 7 schemes
Axis Mutual Fund (MF) made personnel changes in seven of its funds. Axis Consumption ETF, Axis Banking ETF, Axis NIFTY ETF, Axis Arbitrage Fund, Axis Quant Fund, Axis Technology ETF and Axis Value Fund are seven funds that have seen management change.
Ashish Naik has been given responsibility for three schemes which are Axis Consumption ETF, Axis Banking ETF, Axis NIFTY ETF.
Meanwhile, Ashish Naik, Devang Shah and Sachin Jain will manage Axis Arbitrage Fund, while Axis Quant Fund will be managed by Naik & Hitesh Das. Jinesh Gopani’s Axis Technology ETF and Jinesh Gopani & Hitesh Das’ Axis Value Fund, Axis MF said in a statement.
Two fund managers, Viresh Joshi and Deepak Agarwal, no longer reflect as fund managers any of the regimes mentioned above.
A Mint report suggests that market regulator SEBI is investigating a case of serious violations in the operation of Axis MF. The fund house in turn informed Axis Bank’s board of directors that it had removed the two fund managers from managing its funds pending investigations. The officials involved in the case under investigation are Viresh Joshi and Deepak Agarwal.
The alleged breach is a practice called “front-running,” which may involve a fund manager buying or selling securities through their personal accounts before the fund itself makes those trades. Since the funds deal in large volumes, their actions tend to impact the price and a favorite can make gains or avoid losses, the report adds.
In a statement, the asset manager said: “Axis AMC has conducted a suo moto investigation for the past two months (since February 2022). AMC has engaged reputable external advisors to facilitate the investigation. As part of this process, two fund managers have been suspended pending an investigation into possible irregularities.We take compliance with applicable legal/regulatory requirements seriously and have zero tolerance for any instances of non-compliance. -conformity.”