The illegal practice of Front Running & what happened at Axis Mutual Fund
Vložit
- čas přidán 26. 07. 2024
- Two fund managers -- Viresh Joshi and Deepak Agrawal -- have been removed from managing assets in seven schemes of Axis Mutual Fund on allegations of front running stock trades. Front running or tailgating is an illegal practice where an individual or a broker gets advance information regarding a big transaction due to be executed in a particular stock and before that trade is executed, the broker invests in those stocks through a personal account, taking advantage of likely price movement. SEBI is currently probing the matter.
--------------------------------------------------------------------------------------------
Join our channel to get access to perks. Click 'JOIN' or follow the link below:
/ @theprintindia
---------------------------------------------------------------------------------------------
Connect with ThePrint
» Subscribe to ThePrint: theprint.in/subscribe/
» Subscribe to our CZcams Channel: bit.ly/3nCMpht
» Like us on Facebook: / theprintindia
» Tweet us on Twitter: / theprintindia
» Follow us on Instagram: / theprintindia
» Find us on LinkedIn : / theprint
» Subscribe to ThePrint on Telegram: t.me/ThePrintIndia
» Find us on Spotify: spoti.fi/2NMVlnB
» Find us on Apple Podcasts: apple.co/3pEOta8
Thank you! As an investor in mutual funds, I didn’t know of such a malpractice going on. Thanks again.
It's only legal if you are billionaire or a Politician.
I was not aware of these kind of malpractice. Thanks for explaining!!
as a individual investor impact on nav is very little in case of front running but for the dealer its a huge profit because of the ticket size ........ same way bank collect tit bit of small small charges fines etc , its small when compare to individual but huge amount since the number of customer are huge ......
consider it as crowd funding for scamster .... throughout small ca career learned only one thing everyone out there is ready to cheat u , trust no one when comes to financials
Crisp and Clear.
Excellent news, nothing exaggerated
Thanks for the information
Very nicely explained. We can have more of such videos from the The Print.
That was very informative
This is by far the best section of the print
Well explained 👍
Yaaay! Another thing SEBI will do nothing about.
DAMN YOU SEEEBI!!! DAMN YOU TO HELLLLLL!!!!
Well explained
All mutual funds indulge in such frauds
Criminal is one who gets caught
Why don't you simply call it "insider trading".? And expecting SEBI to take action is laughable - 8 years have lapsed since the incident and Sebi has yet to investigate the NSE fraud. If it's criminal why can't they be imprisoned ? Sebi actually does a great job of protecting these white collar criminals. Very rarely will you hear of brokers being thrown into jail.
This is a nice explanation. Also, the penalty of 10-25 Cr or 3 times the profit made that is likely to be imposed is quite sizeable. Compare this with the penalty imposed on bureaucrats and ministers for fraud. Some laws need dire evolution in India.
Similar to insider trading
nice
Sometime back, a person from a TV channel involved in unfair trade practices came to light, confirming what was widely speculated. While the incident under.ined credibility of the fund house,it does not end there. The doubt still lingers in the mind of common investors whether the evils practice is still prevalent or not. Is the practice still widespread or not,is a question which would not go so easily from our minds. Now,this Axis mutual fund house incidents comes to light. Ot is now confirmed that the mutual fund managers are also not holy. The same western crops up-Is it a regular practice in which fund managers indulge for personal gains?.How deep is the disease?. It raises question mark about fund houses as a whole. There is no link in saying and be complacent that once in a while one-off incident does not mean much. No, such fraudulent practices cannot be dismissed so lightly. It undermines credibility of the who tribe. It is not about an individual any more,because these two persons have resorted to such nefarious activities in the capacity of fund managers.
I was a bit hesitant about index investing, though I invest a small portion of my money. Bit this incident has forced me to think whether would it not be wise to invest wholly in Index funds ,where fund managers have no such role or scope for manipulation . But it must be said that luckily Indian financial system has robust regulatory frame-work in place. However, punishments for such financial irregularities must be much much more stricter, since the irregularities affect small time investors more than HNIs and other people having bulging purposes . Even though money matters to everyone ,the shock is felt more by small investors.
They should have been charged with embezzling public at least 25 years at least.
It's not embezzling it's more like insider trading
What an ongoing SIP investor should do in the context of front running ?
Should one not only stop the SIP but also exit from the funds ?
Will all the Axis MFs will get impacted or only particular funds ?
If the government agencies close their eyes,then such malpractice are bound, if RBI had taken proper checks frauds of mallaya and nirav modi would not have happened, did any of the RBI top officials had been punished A Big NO,so the government is encouraging
India needs to have ETFs like usa. They are just like mutual funds but can be traded just like stocks. Like SPY is S&P 500 etf and moves according to index.
Isn't ETF already there 🤔 like juniorbees infrabees ETF sensex next 50??
We already have them.
How did they make these Manager confess, and dug out the details of unlawful practice, as our authorities could never know who Chitras Yogi was.
That's why bro hire only CFAs...
I have invested huge amounts in different Axis mutual funds. How will it impact my returns??
your returns will be slightly less. But you should stop your SIPs in them - bad actors need to be punished.
If you have invested in the same Mutual fund these fraud managers were managing, then minor impact. If not, then no impact.
is front running same as insider trading?
s , he is just using a similar word. moreover broker did it before client so called "front running" bt this is also a form of insider trading only .
How were they caught?
some person must have not been paid enugh bribe & so out of jeaulously he made himself a whistleblower
has SEBI taken any action against Chitra and Subu ?? Viresh and Deepak are small fish, they will get a slap on the wrist -- this too shall pass until the next scam is in the headlines.
kite runner -> front runner
Jesus i just invested 20k in axis mutual fund
Now promote Direct mutual funds as the advisor client r calling Advisor but whom shall the Direct Client call
No jail time.. Waah lol
Not a criminal case