SAT directs Sebi to share more documents in Axis front-running case
Mumbai, Sep 22, 2025
The Securities Appellate Tribunal has partly allowed Viresh Joshi's appeal, directing Sebi to share more documents in the Axis Mutual Fund front-running investigation
The Securities Appellate Tribunal (SAT) has partly allowed an appeal filed by Viresh Joshi, former chief dealer of Axis Mutual Fund, directing the Securities and Exchange Board of India (Sebi) to share several additional documents that he had sought in connection with the front-running case.
In its order dated September 18, a bench led by Presiding Officer Justice P S Dinesh Kumar set aside Sebi’s October 23, 2023 communication rejecting Joshi’s request for supply of investigation material, holding that a noticee is entitled to all documents necessary to defend himself.
Sebi had, in February 2023, passed an interim order-cum-show-cause notice against Joshi and 19 others for allegedly executing trades ahead of large transactions placed by a major client through 25 brokers. The regulator had impounded over Rs 30.55 crore and barred the noticees from accessing the securities market.
Joshi, in his appeal before SAT, argued that Sebi had withheld crucial evidence — including digital data, statements of witnesses, trade logs, and call records — which were necessary to prepare his reply to the charges. Sebi, meanwhile, maintained that all relevant material had already been provided or inspected.
After hearing both sides, the tribunal held that Joshi was entitled to several documents which Sebi had denied, subject to redaction of sensitive personal data of third parties.
On some other items, including the Section 65B certificate for Bloomberg chats, the tribunal declined to intervene, noting that admissibility of evidence would be determined at a later stage.
“The factual matrix whether appellant’s devices were under the custody of AMC is an important aspect while dealing with the securities. Therefore, appellant shall be entitled for a copy of the daily register kept by AMC. We direct Sebi to provide the same,” SAT said in its order.
SAT termed Sebi’s refusal to share logs of the appellant it had obtained as “untenable.”
[The Business Standard]
