Violation of ethics among Axis charges for dismissing top dealer

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The fund house has refrained from accusing the former fund manager of front running.
Three outside firms, Alvarez and Marsal, AZB, and Deloitte, are all looking into the situation.


Axis Mutual Fund’s press release on the layoff of top dealer Viresh Joshi last month was light on facts, referring only to his “behaviour” and a “ongoing investigation.”

In Joshi’s termination letter, however, the fund firm was more straightforward, citing a variety of reasons, including violations of the company’s code of conduct and ethics.

Joshi, the head dealer and fund manager of five schemes at Axis Mutual Fund, India’s fifth-largest fund company by assets, was fired on May 18th.

Joshi refused to comply with the company’s inquiry and explain the source of his income and assets, made false charges of coercion, and couldn’t explain a whistleblower’s email accusing him of front-running, according to his termination letter, which Mint obtained.

Axis Mutual Fund believes he broke securities law, according to the letter. Viresh Joshi, the fund supervisor and seller for Axis mutual funds, was fired on May 18 with a “bare bones allegation” that it was “in addition to their ongoing inquiry and his actions.”

Nonetheless, documents obtained by Mint show that he was fired for a variety of reasons, including violating the company’s code of conduct and ethics.


According to Joshi’s termination notice dated 18 May, reviewed by Mint, Joshi was fired because he refused to cooperate with the investigations, refused to explain the source of revenue and belongings, made false allegations of coercion, failed to explain an e-mail that made the allegations of entrance working against him, and the belief that he broke securities legislation.

The fund house has refrained from alleging that the prior fund supervisor’s entrance was working against him. Three outside firms, Alvarez and Marsel, AZB, and Deloitte, are investigating the situation.


“Following these investigations, Axis will pursue legal and other remedies,” said a source with intimate knowledge of the situation.


“At this time, we are unable to address any additional issues/questions raised in your e-mail. However, we can confirm that:

I the internal investigation is still ongoing, and we continue to work and cooperate with regulatory authorities in this regard; and

(ii) the employment action we’ve taken is based on our investigation and its findings, and we’ll take all necessary legal steps to protect our interests,” said an Axis mutual fund spokesperson in an emailed statement.


At Axis Mutual Fund, Joshi was the top seller and fund supervisor for five mutual fund schemes.


“You may have been unable to provide required explanations and papers, and in reality provided the company with inaccurate and deceptive information.” As a result, the organisation has lost faith in you,” Axis stated in the termination notice.

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