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The Securities and Exchange Board of India (SEBI) is now looking into allegations of front-running inside Quant Mutual Fund's operations. The fund has responded to this probe. The fund house has reaffirmed its resolve to provide clients with higher risk-adjusted returns while cooperating fully with the regulator.
The probe by SEBI is in response to claims made by either an external broking business or an internal dealer that confidential information about Quant's trading activity was disclosed. Front-running, or taking advantage of advance knowledge of large orders, may have occurred when unauthorized individuals used this information. During the course of the inquiry, digital gadgets such as laptops and cell phones were seized by SEBI during search and seizure operations at Quant's Mumbai headquarters and the residences of witnesses in Hyderabad.
Quant's executives who knew the size and execution timing of the orders that were not in the public domain are under the lens of the regulator.#mutualfunds https://t.co/3aZlOQVz1t
— ET Mutual Funds (@ETMutualFunds) June 24, 2024
Clients of Quant Mutual Fund received a message from the fund in response to these events. "Quant Mutual Fund would want to address any concerns you may have regarding this subject. We recently received inquiries from SEBI. We would like to reassure you that Quant Mutual Fund is a regulated organization and that we will always work together with the regulator throughout any review. We will continue to give SEBI the support it needs and will continue to submit data on a regular and as-needed basis," the statement said.
Quant stressed that, in spite of the criticism, its principal objective of providing investors with greater risk-adjusted returns is unaffected. "With over 8 million folios and 93,000 assets under management (AUM), we are grateful for the trust, faith, and strength of our investors. The same level of support, in our opinion, will persist as Quant's research skills and analytical resources will keep our investors on the cutting edge. The fund firm stated, "We are still dedicated to providing higher risk-adjusted returns in the future.
#QuantMutualFund issues #clarification on #Sebi #probe in front-running casehttps://t.co/apsecyfFvv
— Economic Times (@EconomicTimes) June 24, 2024
Additionally, Quant Mutual Fund reaffirmed its commitment to openness and conformity to legal requirements. "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 press release added.
The inquiry conducted by SEBI into Quant Mutual Fund has garnered significant attention, underscoring the gravity of front-running as an illicit and immoral practice inside the financial markets. Front-running undermines investor confidence and market integrity when brokers or fund managers take advantage of advance notice of large orders to their own trading accounts.
For more than 25 years, Sandeep Tandon, the creator of Quant Group, has been a prominent figure in the financial services sector. Tandon is in charge of 22 different Quant Mutual Fund schemes' investment choices. His vast experience includes positions at The Economic Times Research Bureau, ICICI Securities, and IDBI Asset Management.
The fund company assured its investors of its steadfast commitment to ethical standards in light of the current inquiry. "Your confidence in the Quant Mutual Fund is of utmost importance to us, and we are dedicated to maintaining transparency and adherence to regulatory standards," the statement continued.
Since its founding in the midst of the global financial crisis in 2008, Quant Mutual Fund has operated under the tenets of "Being Relevant" and "Predictive Analytics." By assuring the preservation and creation of wealth through ongoing knowledge updates and creative systems and procedures, these principles are intended to assist the company in navigating the dynamic and unstable financial landscape.
After #Sebi conducted search and seizure operations in a suspected case of front-running, #QuantMutualFund said it is cooperating with the regulator and remains committed to delivering superior risk-adjusted returns.https://t.co/IOKTglM7fn
— ETMarkets (@ETMarkets) June 24, 2024
The market regulator took action in response to irregularities found during routine inspections. Following their inspections, audit firms had also raised issues, which they reported to SEBI. Because of these disparities, SEBI raided Quant's Hyderabad and Mumbai headquarters.
The management of Quant Mutual Fund and its investors are still awaiting additional information as the inquiry moves forward. Despite the difficulties presented by the ongoing investigation, the fund house is unwavering in its dedication to moral behavior and legal compliance in an effort to preserve the faith and confidence of its investors.
