SEBI Investigates Quant Mutual Fund For Front-Running Suspicions: Sources

The Securities and Exchange Board of India (SEBI) recently conducted search and seizure operations at Quant Mutual Fund, owned by Sandeep Tandon. The regulator suspects front-running activities at the fund.

Quant Mutual Fund responded to these reports by issuing a statement. They emphasised their commitment to full cooperation with SEBI and maintaining transparency throughout the investigation.

Commitment to Transparency

In their official statement, Quant Mutual Fund said, "Recently, Quant Mutual Fund has received inquiries from SEBI, and we want to address any concerns you may have regarding this matter. We will provide all necessary support and continue to furnish data to SEBI on a regular and as-needed basis."

The fund assured its investors that their primary goal remains delivering superior risk-adjusted returns. They highlighted their advanced research capabilities and analytical tools as key factors in maintaining investor confidence.

SEBI's Investigation

Sources revealed that SEBI's search operations took place on Friday and Saturday. The operations covered premises in Delhi, Mumbai, and Hyderabad. SEBI's investigation wing carried out these searches after a detailed probe into allegations of front-running.

Quant Mutual Fund had been under SEBI's surveillance for a significant period. The investigation included extensive inquiries by the regulator into the fund's activities.

Understanding Front-Running

Front-running is a serious financial crime where brokers or insiders execute trades based on advance knowledge of pending orders from their clients. This practice can manipulate the market, undermining investor trust and market integrity.

Quant Mutual Fund reassured its investors of its steadfast commitment to maintaining investor confidence. They stated, "With over 8 million folios and an asset under management (AUM) of ₹93,000 crore, our commitment to maintaining investor confidence remains steadfast. We appreciate the trust and support of our investors."

The fund also reiterated its dedication to providing superior risk-adjusted returns through advanced research capabilities and analytical tools.

The ongoing investigation by SEBI aims to uncover any potential misconduct within Quant Mutual Fund. The fund has pledged full cooperation with the regulator throughout this process.

As the investigation continues, Quant Mutual Fund remains focused on upholding transparency and delivering value to its investors.