’Cooperating with Sebi...’ says Quant Mutual Fund on front-running allegations

Quant Mutual Fund, which is facing front-running charges, has said it is “fully committed to cooperating with the regulator”.

The statement came after Moneycontrol reported that the Securities & Exchange Board of India (Sebi) had conducted search and seizure operations at Quant Mutual Fund's offices in Mumbai and Hyderabad on suspicion of front-running. 

Sebi has also questioned Quant Mutual Fund dealers and persons connected with the case, Moneycontrol reported, quoting sources who have pegged alleged profits from the front-running operations at around ₹20 crore.

Front-running is an illegal practice where fund managers or dealers or brokers who are aware of upcoming large trades place their own orders beforehand to profit from an anticipated price movement when the large trade is executed.

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Sandeep Tandon-owned Quant Mutual Fund confirmed it had received inquiries from the markets regulator.

“Recently, Quant Mutual Fund has received inquiries from Sebi, and we want to address any concerns you may have regarding this matter," the company said in a statement. 

"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,” the company said.

Quant Mutual Fund has been the among the fastest-growing mutual funds in the country with assests under management (AUM) of more than ₹90,000 crore.

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“Our primary goal remains unchanged: to deliver superior risk-adjusted returns to all our valued investors. Your confidence in Quant Mutual Fund is of utmost importance to us, and we are dedicated to maintaining transparency and adherence to regulatory standards,” the company said.