📷 Image Credits: Moneycontrol
Quant Mutual Fund, one of India’s fastest-growing asset managers, is currently under scrutiny by the Securities and Exchange Board of India (Sebi) over alleged front-running activities. The mutual fund house recently confirmed in a communique to its investors on July 13 that Sebi’s data collection was part of a court-approved search-and-seizure operation and not a routine enquiry.
Sebi’s probe into Quant Mutual Fund’s suspected front-running activities has led to search and seizure operations at Quant’s head office in Mumbai and at suspected beneficiaries’ addresses in Hyderabad. The regulator has raised concerns over potential information leakage based on alerts from its surveillance system indicating matching transactions between certain entities and Quant Mutual Fund.
The investigation focuses on the possibility of a dealer or a broking firm handling Quant’s orders leaking trade information to external beneficiaries. Sebi has seized digital devices during the search operations to gather evidence and plans to question individuals with access to Quant’s trade information.
Quant Mutual Fund, known for its rapid growth and top-performing fund houses in India, has assured investors of its commitment to cooperate with Sebi and provide necessary support for the review. Despite the ongoing investigation, Quant aims to maintain transparency and adherence to regulatory standards while delivering superior risk-adjusted returns to its investors.
The news of Sebi’s investigation into Quant Mutual Fund has impacted the market sentiment, with small and midcap stocks on Dalal Street experiencing a sharp decline. Investors are closely monitoring the developments and awaiting further updates from both Sebi and Quant Mutual Fund.
In conclusion, the ongoing scrutiny of Quant Mutual Fund by Sebi highlights the importance of regulatory compliance and transparency in the financial sector. Investors are advised to stay informed about the situation and exercise caution while making investment decisions related to the mutual fund.
