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Mumbai: Viresh Joshi, a former fund manager at Axis Mutual Fund (MF), on Wednesday in his appeal before the Securities Appellate Tribunal sought certain documents from the Securities and Exchange Board of India (Sebi) in a case related to his alleged involvement in front running.
The case pertains to a series of allegations including front running, receiving bribes from brokers and placing trade orders at inflated prices against certain entities—a mix of companies and individuals —of Axis MF, in “complete disregard for investors’ interests”. Front-running includes buying a stock prior to an expected large transaction by an MF that is likely to raise the share price.
“The grievance in this appeal is in relation to furnishing of documents. We have asked Sebi for certain documents, however, we have been provided with only some of the documents from the regulator,” Joshi’s legal representative informed SAT.
The appeal said it seeks the documents in compliance with principles of natural justice. The documents that have been asked for are part of the investigation relied upon in Sebi’s order. “There should be no prejudice for Sebi to furnish the relevant documents in the matter in order to enable us to make our case,” the counsel added.
Advocate Nirman Sharma represented Joshi, while Vishal Kanade appeared for Sebi.
“The stand of Sebi is that whatever is relevant (in terms of the documents) has already been provided to the appellant. Beyond that what has been asked for is not required to be given since it does not pertain to the appellant,” said Kanade.
In March 2023, the market regulator in an interim order directed impounding ₹30 crore made as wrongful gains in the Axis front-running matter. Sebi had asked Joshi along with other entities to jointly pay the amount. Joshi and these 20 entities were also restrained from accessing capital markets, as per the 100-page order.
Following the order, Joshi had approached the appellate tribunal. On Wednesday, SAT heard both the parties and asked Sebi to file a reply within two weeks. Justice Meera Swarup said the matter will be taken up for a detailed hearing on 14 March.
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Published: 07 Feb 2024, 06:48 PM IST
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