NEW DELHI: Days after terminating its chief trader Viresh Joshi, Axis Asset Management Company on Friday sacked its fund manager Deepak Agrawal, who too was facing allegations of front-running.
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.
Earlier this month, Axis AMC -- the mutual fund promoted by Axis Bank -- had suspended these two fund managers, pending the completion of an investigation into the case.
"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.