MUMBAI: Hit by front-running scandal, Axis Asset Management Company, country’s seventh largest mutual fund house, on Thursday announced key changes in top management in a bid to regain investors’ confidence.
The fund house has let go of its long-time CEO and MD Chandresh Nigam. It has appointed B Gopkumar as managing director and chief executive officer and has roped in Ashish Gupta from Credit Suisse as chief investment officer. Gopkumar will replace Nigam. Nigam had joined Axis AMC in July, 2009 as head of equities and assumed the role of MD & CEO on May 1, 2013 and led Axis AMC for two terms spanning 10 years.
“As part of the internal succession plan, B Gopkumar who is currently the MD & CEO of Axis Securities has been approved by the Board to be the MD & CEO of Axis AMC from May 1, 2023 till April 30, 2026, subject to receipt of requisite approvals as necessary. Pursuant to this movement, internal succession process at Axis Securities has been initiated,” said the company in a statement. Axis AMC, which manages assets of around Rs 2.50 lakh crore, was rocked by the front-running scandal that came to light when the fund house sacked its chief dealer Viresh Joshi in May 2022.
Joshi was suspended after he was found guilty in an internal investigation. Front-running, which is illegal in India, involves purchasing a stock based on advance exclusive information regarding an expected large transaction that would affect its price. Capital markets regulator Sebi, last month, barred 21 entities, including Axis Mutual Fund’s former chief dealer Viresh Joshi, from the securities market in connection with the front-running case at the fund house.
Gopkumar had joined Axis Securities as the Managing Director & CEO in October 2019, and has over 28 years of professional experience in financial services industry in areas of sales and distribution, managing large teams, marketing & branding & building of digital eco-system. Gupta was the Head of India equity research at Credit Suisse.
“With these appointments, Axis Mutual Fund will look forward to capitalising on Gopkumar’s experience and leadership in building large distribution businesses, and Ashish’s deep understanding of capital markets and its constituents,” said Amitabh Chaudhry, Chairman of Axis Asset Management Company.