Quant Mutual Fund recently issued a statement to address investor concerns around Sebi's front-running investigation. The fund house stated that they are "fully committed to cooperating with the regulator."
This comes after a report by moneycontrol indicated that the market watchdog had conducted search and seizure operations at Quant Mutual Fund's Mumbai and Hyderabad locations, suspecting front-running activities.
“Recently, Quant Mutual Fund has received inquiries from SEBI, and we want to address any concerns you may have regarding this matter. 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 Sandeep Tandon-led company clarified in a statement.
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Quant Mutual Fund has reassured its investors that its main goal remains the same, which is delivering superior risk-adjusted returns.
Since getting its mutual fund license from Sebi in 2017, Quant Mutual Fund has rapidly grown. Its assets have soared from about Rs 100 crore in 2019 to over Rs 90,000 crore today, making it a favorite among retail investors.
"We appreciate the confidence, faith, and strength of 80 lacs plus folios and 93,000 AUM and we believe that the same support will continue as quant’s research capabilities and analytical tools will keep our investors ahead in the curve and we remain committed to delivering superior risk-adjusted returns in the future too," the company added.
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What is front-running?
Front-running is an illegal activity wherein a broker or trader uses insider information about an upcoming large transaction to get a jump on the market. Knowing that this big trade will impact the security's price, they make their own trades first to profit from the expected price change, resulting in an unfair advantage.
