Axis AMC sacks another fund manager Deepak Agrawal over alleged front-running allegations

Axis Asset Management Company, the mutual fund promoted by Axis Bank, has terminated fund manager Deepak Agrawal with effect from May 20, 2022, who was facing allegations of front-running.

"The employment of Mr. Deepak Agrawal – Fund Manager with Axis Asset Management Company Limited (‘Axis AMC’) has been terminated with effect from May 20, 2022. Consequently, he ceases to be a Key Person of Axis AMC. Accordingly, all references to Mr. Agrawal in the SAI of the Fund stands deleted," the company said in a statement.

Earlier this month, Axis AMC had suspended these two fund managers, pending the completion of the investigation into the case.

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"Axis AMC has been conducting a suo moto internal investigation since February 2022, using reputed external advisors to assist with this ongoing investigation. Further to our ongoing investigation, following the decision to suspend him, the employment of Deepak Agrawal with Axis AMC has been terminated with effect from May 20, 2022," the fund house said in a statement.

"Accordingly, Deepak Agrawal ceases to be a Key Person of Axis AMC," it added. The asset management company had on Wednesday terminated its chief trader and fund manager, Joshi.

However, Axis AMC did not elaborate on the violations that led to the duo's sacking. Axis AMC, which is one of the leading mutual funds in the country with assets under management to the tune of Rs 2.59 lakh crore, is facing allegations of front-running and a reported regulatory probe.

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Front-running refers to an illegal practice in the stock market where an entity trades on the basis of advance information from a broker or analyst before the information has been made available to their clients.