📷 Image Credits: The Economic Times
Quant Mutual Fund has issued a clarification in response to reports indicating an investigation by the Securities and Exchange Board of India (Sebi) into alleged front-running activities. The company has emphasized its commitment to cooperation and transparency, reassuring investors of its regulated status and willingness to work closely with the regulator. The probe involves suspicions of information leakage and unauthorized trading activities, leading to search and seizure operations at Quant’s Mumbai headquarters and the addresses of suspected beneficiaries in Hyderabad. Sebi’s surveillance system flagged transactions closely mirroring those of Quant Mutual Fund, raising concerns of possible malpractice. The regulator plans to interrogate individuals with access to trade information to ascertain the extent of the alleged front-running. Market sentiment has been affected by the investigation, impacting small and midcap stocks on Dalal Street. Key industry experts have noted the potential negative impact on market sentiment due to the ongoing Sebi inquiry. Overall, this development underscores the need for strict regulatory oversight in the financial sector to maintain market integrity and investor trust.
