Sebi bars former Axis MF dealer Viresh Joshi from securities markets for 7 years front-running case

Markets regulator Sebi has barred former Axis Mutual Fund chief dealer Viresh Joshi and Dubai-based trader Prijesh Kurani from the securities market for seven years in a front-running case involving trades of Axis Mutual Fund.

The regulator also directed that Rs 30.56 crore already impounded in the matter be treated as disgorgement and transferred to the Investor Protection and Education Fund. The noticees have also been asked to pay 12% annual interest on the unlawful gains from the end of the investigation period until the date of deposit.

Sebi ’s final order, passed on July 24, found that Joshi, who was chief dealer at Axis MF, had access to non-public information about the fund house’s impending orders and shared it with Kurani. According to the order, Kurani used multiple accounts to place trades ahead of Axis MF orders and square off positions for gains.


The trades were examined for the period between September 1, 2021 and March 31, 2022. Sebi said its alert system had generated front-running alerts in trades of Axis Mutual Fund, following which an investigation was carried out.

The regulator said the scheme involved a network of people and entities. It said Joshi was the information source, Kurani placed the trades, and others helped arrange trading accounts or allowed their accounts to be used.

Sebi said Sumit Desai, Pranav Vora and Vaibhav Pandya helped in arranging mule accounts and providing trading infrastructure. The regulator also found that trades were placed through accounts belonging to Dharini Kurani, Rekha Kurani, Bharti Godaya, M K B Bespoke Audio General, Nishil Marfatia, Olga Trading, Bhavin Shah, Rupal Shah and Visa Capital Partners.

How Sebi described the scheme

According to Sebi , the front-running trades followed two broad patterns. In a buy-buy-sell pattern, the front runner bought shares before Axis MF’s buy order and sold after the fund’s order moved the price higher. In a sell-sell-buy pattern, the front runner sold before Axis MF’s sell order and bought back after the price moved lower.

Sebi said Kurani placed trades using trading terminals of Marfatia Stock Broking and Woodstock Broking from Dubai. It said the trades were executed through several accounts and showed a repeated pattern of positioning before Axis MF’s orders.

The regulator said the evidence included trade logs, call records, WhatsApp chats, statements of noticees, trading terminal data and references to coded identities such as “Jadugar”. Sebi found that the term referred to Joshi and said the material on record showed his involvement in the scheme.

Sebi said Joshi’s role was more serious than that of a passive information carrier. The order said he conceived and orchestrated the scheme, coordinated with Kurani, directed the trading activity and helped route wrongful gains through a Dubai-based entity.

Kurani’s role was also treated as central. Sebi said he acted as the offshore execution hub, used multiple connected accounts and helped conceal who controlled and benefited from the trades.

The highest gains were attributed to Visa Capital Partners at Rs 14.07 crore. Nishil Marfatia’s account saw gains of Rs 3.08 crore, Olga Trading Rs 3.01 crore, Dharini Kurani Rs 2.79 crore, Bhavin Shah Rs 1.98 crore, M K B Bespoke Audio General Rs 1.83 crore, Rupal Shah Rs 1.42 crore, Rekha Kurani Rs 1.40 crore and Bharti Godaya Rs 96.65 lakh. Total wrongful gains were pegged at Rs 30.56 crore.

Penalties and market bans

Sebi barred Joshi, Kurani, Dharini Kurani, Rekha Kurani, Bharti Godaya, M K B Bespoke Audio General and Bindesh Kurani for seven years. Sumit Desai and Pranav Vora were barred for five years. Vaibhav Pandya, Nishil Marfatia, Olga Trading, Krunal Khamar, Kamlesh Dhanrajani, Bhavin Shah, Rupal Shah, Visa Capital Partners, Suresh Jajoo, Vimla Jajoo, Ankit Jajoo and Sheepra Kabra were barred for three years.