Bombay HC quashes FIR against former Axis Mutual Fund chief dealer

The Bombay High Court has quashed an FIR against former Axis Mutual Fund chief dealer Viresh Joshi in an alleged front-running case, ruling that prosecution under the SEBI Act can be initiated only on a complaint by SEBI itself.

The FIR, registered at Sion police station and later transferred to the Economic Offences Wing, accused Joshi of sharing confidential information about large fund orders with co-accused persons who traded ahead to profit. The Enforcement Directorate claimed the proceeds were routed through multiple entities.

Justice RR Bhonsale held that the special law under SEBI must take precedence over general criminal law, noting SEBI is an expert body. The court urged SEBI to take 'prompt, swift and effective steps' if warranted and left open independent offences under general criminal law as well as Axis Mutual Fund's separate complaint.