Page 13 - Banking Finance June 2022

MUTUAL FUND

Mutual Fund

News

Terminated fund manager ask executives holding key responsibili- ened the scope of the probe, accord-
ties to start working from the office by ing to sources. Alvarez and Marsal
sends legal notice to Axis
June 10. The move is aimed at greater (A&M) is already investigating the
Mutual Fund vigilance against wrongdoing and matter for Axis Mutual Fund.
comes in the wake of allegations of
Viresh Joshi, ex-fund manager and The fund house has widened the scope
front running by two fund managers at
chief dealer at Axis Mutual Fund, has of the investigation to include the in-
Axis Mutual Fund, said sources.
sent a legal notice to the fund house vestment patterns or fund deployment
against his 'unlawful termination'. "We One of the reasons why the alleged and if more people were involved in
are in communication with Axis Mutual activities by the Axis executives had the front-running.
Fund on behalf of our client Mr Viresh gone unnoticed is said to have been the
According to sources, the market regu-
Joshi and have duly replied to the un- investment team working from home
lator had asked Axis Mutual Fund to
lawful termination notice," said Chirag for over two years on account of Covid- pin down the precise modus operandi
M. Shah, Counsel, Mansukhlal Hiralal related movement restrictions. in the case and widen the scope of in-
& Co,
"Flexibility is given to employees to vestigations.
Axis Mutual Fund released a statement work from homes, especially those "Sebi probably wants to look into simi-
on May 19 which had stated that "Axis
handling critical functions that deal lar fact patterns in other cases too
AMC has been conducting a suo moto
with the markets, such as investments, where there could be front-running
internal investigation since February
dealing, operations, compliance / risk allegations," the person said.
2022, using reputed external advisors
management etc. may be withdrawn,"
to assist with this ongoing investiga-
said the AMFI communication to fund Sebi allows mutual fund
tion.
houses. "This may be implemented at
houses to launch passive
Further to our investigation, his con- the earliest, but no later than June 10,
duct and following the decision to sus- 2022." reviewed a copy of the AMFI ELSS
pend him, the employment of Mr. letter. SEBI has modified the "Categorization
Viresh Joshi has been terminated with and Rationalization of Mutual Fund
effect from May 18, 2022."
Axis Mutual Fund hires Schemes" to allow fund houses to
launch passive equity linked saving
Deloitte to investigate ir-
AMFI asks asset managers schemes. Investors can now invest in
regularities passive tax saving scheme schemes to
to ask key persons to work save taxes under Section 80C of the
Axis Mutual Fund has hired Deloitte as
from office a second investigator in the Income Tax Act.
AMFI has advised all asset managers to frontrunning case after the fund wid- In a circular released, Sebi has said that

BANKING FINANCE | JUNE | 2022 | 13