SEBI impounds ₹30.55-crore ill-gotten gains in Axis Mutual front-running case

  • March 1, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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SEBI impounds ₹30.55-crore ill-gotten gains in Axis Mutual front-running case

Subject: Economy

Section: Capital Market

Context: SEBI has barred Viresh Joshi, the fund manager of Axis Mutual Fund, and 20 entities linked to him in a front running case linked to the fund house. The regulator has identified ₹30.55 crore as ill­-gotten gains made through the front­running activities and directed that this amount be impounded.

Concept:

  • Front running is the illegal practice of purchasing a security based on advance non-public information regarding an expected large transaction that will affect the price of a security.
  • Front running is considered as a form of market manipulation and insider trading because a person who commits a front running activity expects security’s price movements based on the non-public information.
economy SEBI impounds ₹30.55-crore ill-gotten gains in Axis Mutual front-running case