Markets regulator SEBI has started cracking down on stock brokers who were allegedly linked to the front running case of Axis Mutual Fund and raided 16 brokers across 30 locations in Gujarat and Maharashtra.
An industry source said that most of the offices raided were from small towns and they were zeroed after analyzing the data provided by the NSE.
He added that SEBI is analyzing the data of Axis MF along with its brokers to establish a trend and ascertain the quantum of profit.
The sacking of two employees after internal and external audit by Axis Mutual Fund is a sign that all is not well at the fund house, but eventually the blame will fall on the doorsteps of the brokers as they are easy targets, said a senior said the executive broking firm.
While it was claimed that the whole issue came to light when the fund manager of Axis MF was seen roaming around in Lamborghini, sources said the market regulator was warning the fund house for ‘unusual performance’ in most of the schemes, Even when he had competitors. Struggling to beat their benchmark.
SEBI should take strong steps to break the suspected nexus between brokers and mutual funds before investors lose their confidence.
Published on
27 May 2022