Axis Asset Management Company has suspended Fund Manager, Deepak Agrawal, as part of the ongoing investigation into serious allegations of front-running by few stock brokers.

This is the second termination of service of an employee by the fund house. On Thursday, Axis AMC suspended Viresh Joshi, Chief Trader and Fund Manager, as part of the investigation.

Key person no more

Further to the ongoing investigation, the fund house on Friday said the employment of Agrawal with Axis AMC has been terminated with effect from May 20 and he will no longer have any association whatsoever with Axis AMC and Axis Mutual Fund. Accordingly, Agrawal ceases to be a key person of Axis AMC, it added.

Agarwal was an equity research analyst and assistant fund manager of Axis Consumption ETF, Axis Quant Fund and Axis Value Fund.

Axis AMC had replaced these fund managers in all the schemes they were managing. “We take compliance with legal and regulatory requirements seriously and have zero tolerance towards any instance of non-compliance,” it said.

Early, this month, Axis AMC had suspended these two fund managers as part of its investigation into stock brokers’ complaints on alleged irregularities in placing of equity orders.

The fund managers-cum- traders of the fund house had been placing orders at a value much higher or lower than the prevailing market price and receiving kick-backs from certain brokers for indulging in such unethical trading practice.

Market regulator Sebi has also initiated a probe and found that they have shared the AMC trade details with a group of brokers in Gujarat.