Axis Asset Management Company (AMC), Axis Mutual Fund Trustee (AMF) and four people reached a INR62.73 million (USD730,832) settlement with the Securities and Exchange Board of India (SEBI) over violations.
The SEBI noted that the violations involved breaches of mutual fund rules on a failure to ensure ethical and lawful practices, and activities in the dealing room.
AMC’s CEO Chandresh Nigam, compliance officer Darshan Kapadia, head of equity Jinesh Gopani and dealer Pawan Jhangiani, along with AMC and AMF, had filed a settlement application with the regulatory authority.
The states that the entities failed to ensure:
- Employees couldn’t conduct activities they weren’t authorised for in the dealing room;
- Only authorised access to the dealing room during market hours;
- Only trades were conducted in the dealing room;
- Monitoring and maintenance of records of communication between dealers and fund managers;
- No wrongful access, i.e., a person using the access card of another or anyone being able to enter the dealing room; and
- No method of ensuring compliance requirements related to the dealing room and non-compliance by employees.
The SEBI said the failure of monitoring dealing activities led to AMC dealer Viresh Joshi front running AMF trades.
Without admitting or denying the violations, AMC, AMF and the four people named earlier filed a settlement application with the SEBI seeking to settle the proceedings that may be initiated. The settlement amount must be paid by the named entities in their joint and independent capacities. The SEBI received the payment on 11 March 2025 and the final settlement order was passed on 24 March 2025.
