India's market regulator, the Securities and Exchange Board of India (SEBI), has successfully dismantled a sophisticated front-running operation within Axis Mutual Fund, resulting in significant bans and penalties. The investigation, detailed in a 146-page final order issued on July 24, 2026, showcases SEBI's advanced capabilities in leveraging digital evidence to expose financial misconduct.
How SEBI Uncovered the Scheme
The probe into the Axis Mutual Fund front-running case began after SEBI's market surveillance system flagged unusual trading patterns. Investigators meticulously analyzed a vast array of digital and communication data, including:
- Call Detail Records (CDRs)
- WhatsApp conversations
- Trading terminal logs
- Apple FaceTime and BOTIM communications
- Witness statements and order execution data
This extensive digital trail allowed SEBI to connect the dots between former Axis Mutual Fund chief dealer Viresh Joshi and Dubai-based trader Prijesh Kurani. Joshi was found to have misused confidential information regarding the fund house's impending large institutional trades between September 1, 2021, and March 31, 2022. This non-public information was then allegedly passed to Kurani.
The Network of 'Mule' Accounts
Prijesh Kurani, operating from Dubai, did not trade in his own name. Instead, he allegedly utilized a complex network of "mule" accounts belonging to relatives, associates, and connected entities. Individuals like Sumit Desai, Pranav Vora, and Vaibhav Pandya reportedly facilitated the arrangement of these accounts and the necessary trading infrastructure. Accounts under names such as Dharini Kurani, Rekha Kurani, Bharti Godaya, and Visa Capital Partners were among those used to execute the illicit trades.
Patterns of Illicit Trading and Penalties
SEBI's analysis revealed consistent front-running patterns: the "Buy-Buy-Sell" (BBS) and "Sell-Sell-Buy" (SSB) strategies. In the BBS pattern, shares were bought just before Axis Mutual Fund's large buy orders, driving prices up, and then sold for profit. Conversely, in the SSB pattern, positions were sold ahead of the fund's large sell orders, causing prices to drop, after which they were bought back at a lower price.
These schemes allowed the involved entities to generate unlawful gains totaling ₹30.56 crore. Visa Capital Partners alone accounted for a significant portion, with ₹14.07 crore in illicit profits.
The regulator concluded that the collective evidence firmly established the front-running scheme, leading to comprehensive enforcement actions.
As a result, SEBI imposed market bans ranging from three to seven years on 21 noticees, including a seven-year ban on Viresh Joshi and Prijesh Kurani. Monetary penalties ranging from ₹10 lakh to ₹3 crore were also levied. The ₹30.56 crore already impounded in the case will be disgorged and transferred to the Investor Protection and Education Fund, along with 12% annual interest from the end of the investigation period.