SEBI probes suspected front-running at Quant Mutual Fund; fund house assures cooperation

Quant Mutual Fund has acknowledged receiving enquiries from capital markets regulator SEBI and said that it will fully cooperate with the ongoing investigation. In a letter to investors, the asset management company stated that it will provide all necessary support and continue to furnish data to SEBI on a regular and as-needed basis.

The company also reassured investors of its primary goal to deliver superior risk-adjusted returns.

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SEBI is currently investigating potential irregularities suspected front-running activities at Sandeep Tandon owned Quant Mutual Fund. As per sources quoted by CNBC-TV18, the regulator conducted search and seizure operations in Delhi, Mumbai and Hyderabad.

Quant Mutual Fund has experienced rapid growth in recent years, with its assets increasing from approximately ₹100 crore in 2019 to over ₹93,000 crore currently. The number of investor folios has surpassed 80 lakh, as noted in the communication to investors.

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