24-Jun-2024
2 mins read
India's fastest-growing Quant mutual fund is alleged to be involved in front–running, an illegal practice of trading in stocks based on privileged information. India's stock market regulator SEBI conducted search and seizure operations in a suspected case of front-running at Quant Mutual Fund's head office in Mumbai and at the address of the fund's other offices in Hyderabad.
"Sebi's surveillance system threw up alerts that transactions of the suspected entities matched Quant Mutual Fund's transactions." SEBI suspects that either a dealer from the Quant or a broking firm through which the fund house places orders was giving out information on the trades to be executed by the company.
While investigating Quant's Mumbai headquarter and in Hyderabad offices, SEBI seized mobile phones, computers and other digital devices to find out who was leaking confidential information from the AMC's to make illegal profit. The hand of either a dealer from a Quant entity or a broking firm through which the AMC places order is being suspected in the case.
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Quant Mutual Fund Founder Sandeep Tandon Addresses Investors
Sandeep Tandon, Founder of Quant Mutual Fund addresses investors via an official note: He said "We want to assure you that Quant Mutual Fund is a regulated entity, and we are always fully committed to cooperate with the regulator throughout any review. We will provide all necessary support and continue to furnish data to Sebi on a regular and as-needed basis."
Quant Mutual Fund AUM Update
Quant Mutual Fund has emerged as one of the fastest-growing fund houses in India and the best-performing fund houses in most product categories. It manages assets worth Rs 93,000 crore and has over 80 lakh folios.
Quant manages 27 schemes with its small-cap scheme with assets of Rs 21,243 crore having returned 68% in the last one year. Earlier, Quant Capital acquired Escorts Mutual Fund in 2018 and relaunched it as Quant Mutual Fund.
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