Arrest of Viresh Joshi, previous chief trader and investment manager at Axis Mutual Fund, in a PMLA probe
The Enforcement Directorate (ED) has taken over a case involving the illegal profits made by certain entities/persons by indulging in front-running trade activities in scrips traded by Axis Mutual Fund from 2018 to 2021. The investigation has led to the arrest of Viresh Joshi, the former chief trader and fund manager at Axis Mutual Fund, who is accused of exploiting confidential information on the trades to be executed on behalf of the company's mutual fund.
According to the ED, the alleged illicit funds generated by various traders/brokers, identified till date, amount to more than Rs 200 crore. The ED investigation into the case is being conducted under the civil provisions of the Foreign Exchange Management Act (FEMA).
Joshi is accused of using mule trading accounts obtained from various brokers to place front-running trades, including through a trade terminal in Dubai. The ED alleges that many other traders/brokers, apart from Viresh Joshi, were involved in the front-running activities.
The ED's search operations are part of an ongoing investigation into the illegal profits made by certain entities/persons by indulging in front-running trade activities. During the searches, the ED froze shares, mutual funds, and bank balance worth Rs 17.4 crore.
The case involves the illegal profits made by certain entities/persons by indulging in front-running trade activities in scrips traded by Axis Mutual Fund from 2018 to 2021. Front-running compromises market integrity and disadvantages other investors.
Joshi's arrest is due to a money laundering probe in a case of cheating of investors to the tune of ₹2 lakh crore. The ED took over the case from an FIR registered by the Mumbai Police in December 2024.
Earlier in 2022, the Income Tax department had conducted searches in this case. The investigation has revealed that other traders/brokers also misused advance inputs on Axis Mutual Fund trades and indulged in front-running to generate illicit trade profits.
As of the latest reports, Joshi was arrested in early August 2025 and remanded in ED custody until August 8, 2025. The ED continues its investigation based on the December 2024 FIR by Mumbai Police. Searches and raids have been conducted across several cities including Delhi, Mumbai, Gurugram, Ludhiana, Ahmedabad, Bhavnagar, Bhuj, and Kolkata.
No publicly available search results identify other named traders or brokers involved beyond Viresh Joshi, suggesting either a focus on him as the main accused or an ongoing process to identify further parties. The investigation remains active under the ED, with other alleged collaborators yet to be publicly named.
[1] Enforcement Directorate (ED) arrests Viresh Joshi in Axis Mutual Fund front-running case
[2] Axis Mutual Fund case: ED arrests Viresh Joshi
[3] ED arrests former Axis Mutual Fund fund manager Viresh Joshi in front-running case
[4] Axis Mutual Fund: ED arrests Viresh Joshi in money laundering case
[1] This arrest is in relation to the Enforcement Directorate's ongoing investigation into the illegal profits made by certain entities in the Axis Mutual Fund front-running case.
[2] The ED has taken charge of a money laundering case involving the former chief trader and fund manager of Axis Mutual Fund, Viresh Joshi, who is accused of involvement in front-running trade activities.
[3] The ED has taken custody of Viresh Joshi, the ex-fund manager at Axis Mutual Fund, as part of their investigation into alleged front-running trade activities and potential violation of the Foreign Exchange Management Act.
[4] The ED has arrested Viresh Joshi, a former Axis Mutual Fund employee, on charges of money laundering and front-running trades, as part of their investigation into illegal profits made in the mutual fund sector.
