SEBI raids brokers linked to front running Axis Mutual Fund
Market regulator SEBI has started cracking down on stockbrokers allegedly linked to the high-profile Axis Mutual Fund case and has raided 16 brokers in 30 locations in Gujarat and Maharashtra.
Most of the raided offices were from small towns and were targeted after analyzing data provided by NSE, an industry source said.
Sebi analyzed the data from Axis MF with that of its brokers to establish a trend and arrive at a quantum of profit made, he added.
The dismissal of two employees by Axis Mutual Fund after the internal and external audit is an indication that all is not well in the fund house, but ultimately the blame will fall on the doors of the brokers as they are the easy target, said a senior executive of a brokerage firm.
Although it was claimed the whole issue was exposed after the Axis MF fund manager was seen wandering around in a Lamborghini, sources said the market regulator was warning the fund house for its “ abnormal performance” in most schemes, even when its competitors struggled to beat their benchmark.
SEBI should get tough on breaking the dodgy link between brokers and mutual funds before investor confidence is shaken.
May 27, 2022