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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Customers are pulling out thousands of crores even as the asset management company investigates its fund managers for front-running trades.
Editor's note: For the lay investor, Axis Mutual Fund was a safe, reliable, credible and consistent fund house to invest in. That faith has now been shattered as the asset management company has sent two of its top fund managers on forced leave over allegations of front-running trades. Just last Wednesday, Axis Mutual Fund was conferred with the title of “best fund house” across equity and debt investment schemes by market research firm MorningStar India. But by Friday, its reputation had been fractured. The fund announced a change in its equity team leadership as it suspended chief trader and fund manager Viresh Joshi and assistant fund manager Deepak Agarwal over allegations that they pocketed crores of rupees by front-running trades. Axis Mutual Fund, a joint venture between Axis Bank and UK-based asset manager Schroders, is the seventh-largest mutual fund company in the country, with Rs 2.59 lakh crore of assets under management. “The initial investigation has revealed that the ill-gotten gains from front-running would stand at about Rs 200 crore,” says an executive at Axis Mutual Fund, asking not to be named. …
The Rs 250 SIP was launched last year by the former SEBI chairperson with one clear goal: financial inclusion. More than a year later, the much-hyped scheme doesn’t seem to have caught on with MF investors.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
While the regulator’s interim order alleges massive irregularities, the long arc of unfinished probes, hearings and appeals makes closure distant.
