Axis Mutual Fund has assured investors that there is no issue with its governance. In a letter sent to investors, Chandresh Nigam, MD & CEO, Axis MF said that it will continue to maintain the highest governance standards, stringent protocols and best in class processes for fund management.
The fund house told investors that it has acted against two fund managers (one of them was Chief Dealer). Based on the findings, the fund house will take further action, it said.
Nigam said, “Axis AMC proactively started an investigation in Feb 2022 and is using reputed external advisors to carry out the investigation. While the review process is still continuing, we have taken action against two fund managers handling certain equity schemes. As our investigation progresses, based on the findings, we will take further action as may be necessary.”
While the fund house has not clarified about the irregularities, a few media reports claim that the two fund managers were allegedly involved in front running.
The fund house has reassigned schemes to other experienced fund managers.
It further assured investors that there is no restriction on redemption and the schemes maintain adequate liquidity to honour redemption requests if any.
