Who Is Viresh Joshi? Former Axis Mutual Fund Manager Arrested

Viresh Joshi, the former chief trader at Axis Mutual Fund, has been arrested by the Enforcement Directorate (ED) for his role in a major ₹200 crore front-running scam. Authorities say he misused insider knowledge of large stock trades to earn illegal profits. Assets worth ₹17.4 crore have already been seized.

Let’s break down who Viresh Joshi is, what he did, and why this matters for the Indian stock market.

Who Is Viresh Joshi?

Viresh Joshi was a senior fund manager and chief dealer at Axis Mutual Fund, one of India’s largest asset management companies. He had access to high-level trading data and used this information illegally to benefit himself and a network of brokers.

Between 2018 and 2021, Joshi reportedly made huge profits by front-running trades—buying or selling shares before Axis Mutual Fund did, based on insider knowledge.

What Is Front-Running?

Front-running is a type of insider trading and is illegal. It happens when someone with early knowledge of large trades makes personal trades to profit before the main transaction happens. This creates unfair market advantages and causes losses to other investors.

How Did Viresh Joshi Operate?

According to the ED:

• Joshi used a trading terminal in Dubai to hide his tracks.

• He traded using fake or “mule” accounts linked to various brokers.

• He concealed assets using shell companies and family accounts.

• He earned more than ₹200 crore through this scam, although the final amount may be higher as investigations continue.

Action Taken So Far

• The ED has seized ₹17.4 crore worth of assets: shares, mutual funds, and cash.

• An FIR was registered in December 2024 by Mumbai Police.

• Joshi was terminated by Axis Mutual Fund in May 2022 after an internal audit exposed suspicious activity.

• SEBI and the Income Tax Department are also investigating.

Impact of the Scam

Joshi’s actions reportedly caused huge financial losses for Axis Bank and affected retail investors. The scam has shaken trust in mutual fund transparency and led to renewed calls for stricter monitoring of trading practices in asset management firms.

Summary