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In the wake of Sebi’s search and seizure operation on suspicion of front-running, Quant Mutual Fund CEO Sandeep Tandon has sought to calm investors, stating that the allegations are exaggerated and urging against panic redemptions.
The Securities and Exchange Board of India recently conducted surprise raids at Quant’s offices in Mumbai and Hyderabad, prompting concerns about the company’s practices. However, Tandon maintained that there has been no disruption in their operations, emphasizing that Quant Mutual Fund remains a regulated entity committed to full cooperation with the regulator.
Quant Mutual Fund, a rapidly growing player in India’s mutual fund market with assets exceeding ₹90,000 crore, boasts a significant portion of its assets in liquid instruments, allowing for easy redemptions. Tandon assured investors that the company has ample liquidity to meet redemption demands.
While about ₹800 crore has been redeemed from Quant post the news of the probe, representing less than 1% of the company’s total assets under management, Tandon advised investors against hasty redemptions. Despite Sebi not yet pressing any official charges, Tandon cautioned investors to monitor the situation closely.
Front-running, an illegal practice involving preemptive trading based on insider information, remains a key concern in the industry. Tandon reiterated Quant Mutual Fund’s dedication to transparency and highlighted the importance of staying informed amidst ongoing investigations.
As the mutual fund sector navigates challenges related to market integrity, investors are urged to exercise caution, stay informed, and wait for further developments before making any drastic decisions. The industry’s commitment to compliance and accountability remains paramount as it strives to maintain investor trust and market stability.
