Mumbai, June 24: Quant Mutual Fund was allegedly suspected of "front-running" after the Securities & Exchange Board of India (SEBI) conducted search and seizure operations on the Sandeep Tandon-owned mutual fund. According to news reports, the search and seizure by SEBI was conducted across two cities - Mumbai and Hyderabad. Reports also said that dealers of Quant Mutual Fund and those connected with the case were also questioned.

According to a report in Money Control, the alleged profits from the "front-running" operations are said to be close to Rs 20 crore. After the incident came to light, Quant Mutual Fund confirmed the developments about receiving inquiries from SEBI. In an email, QMF said they are "fully committed to cooperating with the regulator throughout any review." Open to Probe by JPC or SEBI, Regulations Will Help Doing Business: Axis My India Chief Pradeep Gupta on Alleged Stock Market Manipulation Through Exit Polls.

Dedicated to Maintaining Transparency, Says Quant Mutual Fund

Quant Mutual Fund also said that it will furnish data to the stock market regulator on a "regular and as-needed basis." QMF also stated that its primary goal remains unchanged. "Your confidence in Quant Mutual Fund is of the utmost importance to us, and we are dedicated to maintaining transparency and adherence to regulatory standards."

What Is Front-Running?

If reports are to be believed, Quant Mutual Fund's small-cap holdings will likely be under pressure today, June 23, after news reports of SEBI's alleged search and seizure operations came to light. So what is "front-running" that QMF has been suspected of by SEBI? In simple terms, front-running can be understood as an illegal practice in the market where fund managers, dealers or brokers who have knowledge of upcoming large trades place their own orders beforehand to profit from the anticipated price movement when the large trade is executed. Sebi Confirms Interim Direction; Bans JM Financial from Managing Debt Public Issues Till Mar 2025.

Who Founded Quant Mutual Fund?

The Sandeep Tandon-led Quant Mutual Fund has been one of the fastest-growing mutual funds in the country. It is reported to have assets under management (AUM) of more than Rs 90,000 crore. Besides, QMF also has the third largest small-cap fund in the country, with an AUM of Rs 20,000 crore. Quant Mutual Fund was founded by Sandeep Tandon and received its mutual fund license from SEBI in 2017.

Since its inception, Quant Mutual Fund has been the fastest-growing mutual fund in the country.

(The above story first appeared on LatestLY on Jun 24, 2024 10:05 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).