Facing allegations of front running and a reported regulatory probe, Axis Asset Management on Friday said it has been suo moto investigating the case since February and has suspended two fund managers pending completion of the investigation. Further, the asset management company has used external advisors to aid the investigation, Axis AMC said in statement.
The statement comes in the wake of complaints reportedly being received by Axis Mutual Fund from stock brokers about fund managers punching in trades on behalf of the fund at values much higher than the market. "Axis AMC has been conducting a suo moto investigation over the last two months (since February 2022). The AMC has used reputed external advisors to aid the investigation," the asset management firm said.
As part of the process, two fund managers have been suspended pending investigation of potential irregularities, it added, "We take compliance with applicable legal/regulatory requirements seriously, and have zero tolerance towards any instance of non-compliance," the asset management firm said. It requested media not to give credence to market speculation and idle gossip, which are baseless and strongly refute the same. Axis Mutual Fund is one of the leading mutual fund in the country with assets under management to the tune of Rs 2.59 lakh crore.
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