Axis AMC pays ₹6.27 crore to settle Sebi case

Axis Asset Management Company (AMC) and several key individuals have paid ₹6.29 crore to the Securities and Exchange Board of India (Sebi) to settle a case involving regulatory violations. The settlement follows an application by the involved parties, which included former CEO Chandresh Kumar Nigam and other executives. The case centered around allegations that Axis AMC failed to properly monitor its dealers, leading to front-running of mutual fund trades. Front-running involves traders making profits by trading in advance of their clients' orders. The violations were linked to insufficient systems for overseeing dealer activities and unauthorized access to the dealing room. The investigation revealed that former dealer Viresh Joshi had been engaging in front-running, and that essential checks and balances within the AMC's operations were lacking. Notably, employees, including ex-head of equity Jinesh Gopani, were accused of leaking confidential trading information. The issues came to light during a forensic examination conducted by various consulting firms. Sebi had previously barred 21 entities involved, including Joshi, from participating in the securities market due to these practices. The settlement means Sebi will not take further action regarding these violations against the applicants. Following the investigation, Chandresh Nigam resigned from his position as CEO in March 2023.