Amid suspicions of possible tax evasion, the Income Tax Authority on Saturday searched locations linked to Viresh Joshi, a former chief trader and fund manager of the Axis Mutual Fund, a middleman and a broker number.
After allegedly pre-running and paying the broker surfaced, Joshi was fired by the wealth management company in May.
According to sources, Joshi and the brokers in the case said was questioned during the raid that began on Saturday. These sources also indicate that information from SEBI is the basis for IT action.
Pre-operation is the trading of stocks or any other financial asset by a broker with first-hand information about a transaction that will soon have a significant impact on the price of the asset.
“SEBI has found certain transactions that point towards Joshi being involved in front running and thereby accumulating assets disproportionate to his income. There are allegations of tax evasion and siphoning of funds abroad and therefore searches have been commenced,” said sources.
Joshi could not be reached for immediate comment. He filed a lawsuit against the fund company in June, claiming Rs 54 for what he considers wrongful dismissal and lack of due process.