Authority: Quasi-Judicial Authority, Securities and Exchange Board of India (SEBI)
Order Date: July 24, 2026
Case Overview
SEBI initiated proceedings against 21 noticees for front-running trades of Axis Mutual Fund ("Big Client") during the investigation period from September 1, 2021 to March 31, 2022. The scheme involved Mr. Viresh Joshi (Noticee 1), Chief Dealer of Axis MF, leaking non-public information about impending orders to Mr. Prijesh Kurani (Noticee 5) based in Dubai. Mr. Kurani executed front-running trades through multiple mule accounts arranged by Mr. Sumit Desai (Noticee 2) and Mr. Pranav Vora (Noticee 3). The trades followed Buy-Buy-Sell (BBS) or Sell-Sell-Buy (SSB) patterns, placed just before Axis MF's orders and squared off before the last tranche of Big Client's orders.
Key findings include:
- Mr. Joshi communicated through encrypted platforms (Apple FaceTime/BOTIM) using mobile number +91 851XXXX891 saved as "Asdfg" in Mr. Kurani's phone
- Illegal gains of ₹30.55 crore were generated across 9 mule accounts
- Profits were transferred through cash/angadias and routed to Vintage Capital Investment LLC in Dubai
- WhatsApp chats, CDR analysis, tower data, and bank statements corroborated the scheme
- Noticees violated Sections 12A(a),(b),(c),(e) of SEBI Act and Regulations 3(a)-(d), 4(1), 4(2)(q) of PFUTP Regulations
Final Outcome
SEBI directed:
1. Disgorgement of ₹30.55 crore with 12% interest p.a. from March 31, 2022 until deposit date
2. Market debarment for periods ranging from 3 to 7 years:
- 7 years for Viresh Joshi, Prijesh Kurani and Kurani family members
- 5 years for Sumit Desai and Pranav Vora
- 3 years for other noticees
3. Monetary penalties totaling ₹6.5 crore:
- ₹3 crore on Viresh Joshi
- ₹1 crore on Prijesh Kurani
- ₹65 lakh on Sumit Desai
- ₹50 lakh on Pranav Vora
- ₹5-40 lakh on other noticees
All penalties must be paid within 45 days. The impounded amount shall be transferred to the Investor Protection and Education Fund (IPEF).
Topics: Front-running, Market Abuse, Regulatory Action