Quant Mutual Fund said in a statement to its investors it is responding to queries received from Sebi, without specifying the nature of the enquiries.
Moneycontrol had reported on Sunday that the Securities and Exchange Board of India (Sebi) was investigating allegations of “front running” – or dealing on price-sensitive information before its general release – at the mutual fund.
“We will provide all necessary support and continue to furnish data to SEBI on a regular and as-needed basis,” the fund said in its statement.
The statement also said, “With over 8 million folios and an asset under management (AUM) of Rs 93,000 crore, our commitment to maintaining investor confidence remains steadfast. We appreciate the trust and support of our investors, and our advanced research capabilities and analytical tools will continue to keep our investors ahead of the curve.”
Reportedly, the market regulator conducted search and seizure operations on Quant Mutual Fund, owned by Sandeep Tandon, due to suspicions of front-running activities.
Sources indicated that the operations occurred on Friday and Saturday, targeting locations in Delhi, Mumbai, and Hyderabad.
Sebi’s investigation wing executed the search following a detailed probe into front-running allegations.
Quant Mutual Fund had been under Sebi’s surveillance for an extended period, with the investigation involving extensive inquiries by the regulator.
What Is Front-running?
Front-running is an unethical practice in the financial markets where a broker or trader takes advantage of advanced knowledge of pending orders from their clients. Specifically, it involves executing orders on a security for their account ahead of the client’s order to profit from the expected price movement.
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