Published: July 24, 2026
India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has passed its final order in one of the country’s biggest mutual fund front-running cases. SEBI concluded that former Axis Mutual Fund Chief Dealer Viresh Joshi orchestrated a deliberate and well-planned front-running operation that generated wrongful gains of ₹30.56 crore by exploiting confidential trading information belonging to Axis Mutual Fund.
The regulator has barred Viresh Joshi and Dubai-based trader Prijesh Kurani from the securities market for seven years, holding that they knowingly misused non-public information to earn illegal profits ahead of large institutional trades.
What is the Axis Mutual Fund Front-Running Case?
The investigation relates to trades executed between September 2021 and March 2022. During this period, Viresh Joshi was serving as the Chief Dealer at Axis Mutual Fund, giving him access to confidential information regarding large equity transactions planned by the fund house.
SEBI found that Joshi leaked this highly sensitive information before the official execution of trades. The information was allegedly shared with associates who placed trades in advance, benefiting from the expected movement in stock prices once Axis Mutual Fund’s large orders entered the market.
How the Alleged Front-Running Scheme Worked
According to SEBI’s findings, the conspiracy followed a systematic process:
Viresh Joshi obtained confidential information about upcoming Axis Mutual Fund trades.
The information was allegedly passed to Dubai-based trader Prijesh Kurani and connected trading entities.
These entities purchased shares before Axis Mutual Fund executed its large buy orders.
Once the mutual fund’s transactions pushed stock prices higher, the shares were sold at a profit.
The illegal profits were distributed among the participants involved in the scheme.
SEBI described the operation as a “deliberate and coordinated scheme” designed to misuse confidential information for personal enrichment.
Wrongful Gains of ₹30.56 Crore
SEBI determined that the front-running operation generated ₹30.56 crore in unlawful gains.
The regulator held that these profits were earned solely because the accused had advance knowledge of Axis Mutual Fund’s trading plans, giving them an unfair advantage over ordinary investors.
SEBI’s Final Order
In its final ruling, SEBI imposed stringent penalties, including:
Seven-year ban on Viresh Joshi from the securities market.
Seven-year ban on Dubai-based trader Prijesh Kurani.
Directions to disgorge illegal gains along with applicable interest.
Findings that the accused violated market integrity by exploiting unpublished trading information.
What is Front-Running?
Front-running is an illegal market practice where someone with access to confidential information about a large upcoming trade buys or sells securities before that order is executed.
For example:
A mutual fund plans to buy shares worth ₹500 crore.
An insider learns about the order beforehand.
The insider purchases those shares first.
Once the mutual fund’s order drives prices higher, the insider sells and earns a profit.
This practice gives insiders an unfair advantage and harms ordinary investors by undermining market fairness.
Timeline of the Case
September 2021 – March 2022: Alleged front-running activities take place.
May 2022: Axis Mutual Fund initiates an internal investigation and removes Viresh Joshi from the organization.
February 2023: SEBI issues an interim order, bars 21 entities, and identifies ₹30.56 crore in wrongful gains.
2024–2025: The Enforcement Directorate (ED) investigates the money trail under anti-money laundering laws.
July 24, 2026: SEBI issues its final order, confirming violations and imposing seven-year market bans.
Impact on Investors
SEBI has clarified that the case relates to the alleged misconduct of certain individuals and not to the current functioning of Axis Mutual Fund.
The action reinforces SEBI’s commitment to protecting investors and ensuring that mutual fund trading remains transparent and fair. Industry experts believe the order will strengthen surveillance against insider trading and front-running across India’s financial markets.
Why This Case Matters
The Axis Mutual Fund front-running case has become one of India’s most significant enforcement actions involving confidential institutional trading information. By imposing lengthy market bans and ordering recovery of unlawful gains, SEBI has sent a strong signal that misuse of insider information and market manipulation will face strict regulatory consequences.
For retail investors, the order highlights the importance of robust market oversight and reinforces confidence that regulators are actively working to safeguard fairness and transparency in India’s capitaSEBI
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