In its final order in the high-profile Axis Mutual Fund front-running case, market regulator Securities and Exchange Board of India (SEBI) has barred former chief dealer Viresh Joshi from the markets for seven years, imposing a monetary penalty of ₹3 crore and confirming the disgorgement of unlawful gains arising from the fraudulent trading scheme. The final order also imposes market access restrictions and penalties on 20 other individuals and entities found to have participated in the front-running operation.
In the
146-page order issued on 24 July 2026, SEBI concluded that Mr Joshi abused his position as chief dealer at Axis Mutual Fund by leaking confidential non-public information relating to impending mutual fund trades to Dubai-based Prijesh Kurani who executed front-running trades through multiple conduit or mule accounts arranged with the assistance of other associates.
In the order, Biju S, chief general manager (CGM) and quasi-judicial authority of SEBI said, "In the present matter, however, the conduct of Mr Joshi, the information carrier, is even more serious. The illegal gains made through the front running is substantially higher than those seen in comparable cases. Further, the Big Client as at 31 March 2022 had approximately 1.28 crore investor accounts. The illegal gains involved along with the large investor base, reflect the scale of the market abuse. Mr Joshi was not merely a passive conduit of information; the material on record shows that he conceived and orchestrated the scheme, identified and coordinated with the executioner (Prijesh Kurani), directed the trading activity, and facilitated routing of wrongful gains through a Dubai-based company that appears to have been incorporated to further the scheme and obscure the trail of illicit proceeds. In fact, Mr Joshi in his statement dated 26 August 2022, when asked about the profit generated through the front-running activity has stated that 'profit sharing ratio was 90% for me and 10% for the arrangers. Considering the tax liability, sometimes, the profit share for me reduced to 60%-80%'. Thus, by his own admission, Mr Joshi has, on a conservative basis, made a profit of about ₹18.33 crore through the present illegal front-running scheme."
"Prijesh Kurani’s role also appears more serious than a typical frontrunner in other cases, because he was not merely placing trades in his own or a single connected account. Prijesh Kurani operated as the offshore execution hub of the scheme. Unlike many front-running cases where the front-running entity simply receives the NPI of the Big Client and trades, Prijesh Kurani’s role extended to cross-border execution, using multiple connected accounts, coordinating the trading setup, and helping to conceal who was actually controlling and benefiting from the trades. This made him central to both carrying out the scheme and hiding it. Thus, the wider operational role played by Viresh Joshi and Prijesh Kurani materially aggravates their culpability and justifies higher restraint and penalty, when compared with the mule account owners and the arrangers of such mule accounts," the SEBI order said.
The regulator held that the scheme operated during the investigation period from 1 September 2021 to 31 March 2022 and resulted in unlawful gains of ₹30.56 crore through coordinated buy and sell transactions executed ahead of Axis Mutual Fund's orders.
Seven-year Ban for Key Conspirators
Under the final directions, SEBI has restrained Mr Joshi, Prijesh Kurani, Dharini Kurani, Rekha Kurani, Bharti Navnit Godaya, MKB Bespoke Audio General and Bindesh Kurani from accessing the securities market and from buying, selling or otherwise dealing in securities for seven years.
Sumit Desai and Pranav Vora have been barred for five years, while Vaibhav Pandya and the remaining noticees, including Nishil Marfatia, Olga Trading Pvt Ltd, Krunal Khamar, Kamlesh Dhanrajani, Bhavin Shah, Rupal Shah, Visa Capital Partners, Suresh Jajoo, Vimla Jajoo, Ankit Jajoo and Sheepra Sumeet Kabra, have been debarred for three years. SEBI said the period already undergone under its interim order dated 28 February 2023 would be set off against these debarment periods.
Disgorgement Transferred to Investor Fund
The regulator directed that the money already impounded pursuant to the interim order, amounting to ₹30.56 crore, shall be treated as the disgorgement amount and transferred to the investor protection and education fund (IPEF).
In addition, all noticees have been directed to pay interest at 12%pa (per annum) on the unlawful gains, calculated from the end of the investigation period until the date of deposit of the impounded amount, with the interest also being credited to the IPEF.
Monetary Penalties
Apart from the market ban, SEBI imposed monetary penalties under the SEBI Act. Mr Joshi has been directed to pay ₹3 crore, while Prijesh Kurani has been fined ₹1 crore.
Sumit Desai has been penalised ₹65 lakh, Pranav Vora ₹50 lakh, Nishil Marfatia and Suresh Jajoo ₹40 lakh each, Vaibhav Pandya ₹5 lakh, while most of the remaining noticees have been fined ₹10 lakh each.
The penalties are required to be paid within 45 days from receipt of the order.
SEBI Confirms Front-running Mechanism
According to the final order, Mr Joshi had access to confidential information regarding Axis Mutual Fund's impending orders by virtue of his role as chief dealer.
SEBI held that he passed this non-public information to Dubai-based Prijesh Kurani, who used trading terminals provided by brokers to place front-running trades through multiple accounts controlled by family members and other entities.
The regulator found that these accounts consistently executed trades shortly before Axis Mutual Fund's large orders and squared off their positions immediately after the mutual fund's trades moved market prices, generating unlawful profits. The trades followed recurring buy-buy-sell and sell-sell-buy patterns.
SEBI further noted that Sumit Desai arranged several trading accounts used in the scheme, Pranav Vora assisted in procuring additional accounts and Vaibhav Pandya acted as an intermediary between Mr Desai and Mr Kurani. The investigation also found that profits generated through the front-running trades were routed in cash through intermediaries before ultimately reaching Mr Joshi.
Long-running Investigation
The final order brings to a close SEBI's quasi-judicial proceedings that began after its surveillance systems detected suspicious trading patterns in Axis Mutual Fund transactions during September 2021 to March 2022.
The regulator had issued an interim order in February 2023, impounding ₹30.56 crore in alleged unlawful gains and restraining 21 entities from accessing the securities market pending completion of the investigation. The matter subsequently involved extensive inspections, replies, hearings and cross-examinations before the final order was passed.
Parallel ED Investigation
The SEBI order comes against the backdrop of an ongoing directorate of enforcement (ED) investigation.
Last year in August, ED arrested Mr Joshi under the Prevention of Money Laundering Act (PMLA), alleging that he and his associates generated more than ₹200 crore in illicit profits between 2018 and 2021 through front-running activities linked to Axis Mutual Fund.
ED alleged that the proceeds of crime were routed through shell companies and overseas entities, frozen assets worth ₹17.4 crore during recent searches, and is investigating international money trails involving properties in London and investments in Dubai and UK.
The agency's probe stems from a first information report (FIR) filed by Mumbai police in December 2024 and is continuing independently of SEBI's regulatory proceedings.
SEBI had earlier clarified that while the misconduct involved individuals associated with Axis Mutual Fund, the operations of the mutual fund as an institution remained unaffected.
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