Lamborghini blows lid of alleged Rs 1,000 Cr mutual fund scandal

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New Delhi, May 6 | A Lamborghini seems to have blown the lid of a huge front running scandal in a private sector mutual fund.

There are now loud whispers of a Rs 1,000 crore scam in a large mutual fund owned by a leading private sector bank involving front running by the fund managers and dealers.

The said fund manager seems to have been using a Lamborghini and buying luxury apartments in and around Mumbai. He is said to be on the payrolls of brokers and accumulated small and midcap stocks on behalf of the mutual fund.

Axis Mutual Fund has carried out changes in fund manager responsibilities with effect from May 4 and Viresh Joshi, who was handling Axis Arbitrage Fund, Axis Banking ETF, Axis Consumption ETF, Axis Nifty ETF and Axis Technology ETF, does not find a mention in the new responsibilities. Deepak Agarwal also does not find mention in the new structure.

As per Twitter comments, there is a speculation that these two have been fired from the fund.

The same comments suggest that Joshi made Rs 500 crore and owned 14 apartments around Mumbai.

Joshi was said to be instrumental in buying small and mid cap stocks and boosting them to place with the mutual fund once they crossed a certain size threshold.

There is also talk that this may be rampant in the Indian mutual fund industry and what some said on Twitter was an industry practice.

It is learnt that the CEO, Chandresh Nigam is also under fire for overlooking these practices. Some of the holdings of the fund may face pressure in the markets as buzz spreads around this scandal.

Source: IANS

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Share Market Closing Bell: Market ends the week in green, Sensex surges 1,534 pts and Nifty sinks below 15,850

Share Market Closing Bell: Market ends the week in green, Sensex surges 1,534 pts and Nifty sinks below 15,850

The NIFTY 50 recouped the previous day’s losses and ended at 2.89 percent higher on strong global cues after China cut key lending rates. Nifty continued its upside rally throughout the day as it ended at 16266.15 levels. Bank nifty closed the session at 34276.40 level with a gain of 960 points. VIX closed at 23.10 down by 5.94%.

48 stocks out of NIFTY 50 closed in green which suggest broad based buying. All the sectoral indices are trading higher with metal, pharma, PSU bank and realty indices up 2-3 percent each. Stocks like DRREDDY, JSWSTEEL, NESTLEIND, TATAMOTORS & TATASTEEL were the top gainers, While SHREECEM & UPL were only two losers. The Nifty has formed Open Bullish Marabozu on a daily time frame which indicates upside momentum for an upcoming session.

Moreover, Nifty has been trading in a range of 15750-16410 levels throughout the week, crossing either side can direct further direction. In addition, Nifty has given a closing above 9-Day Moving Average which indicates a bounceback from lower levels can be seen.

However, the momentum indicators MACD & Stochastic were trading witha positive crossover & reversed from oversold zone on an hourly chart which suggest a northward journey in Nifty. The Nifty may find Strong support around16000 levels, while on the upside 16410 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33200 levels while resistance at 34800levels.

Palak Kothari
Research Associate
Choice Broking

Source: Choice India

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