SEBI public announcements or legal filings

SEBI Probes Quant Mutual Fund for Front-Running, Conducts Search Operations Amid ₹90,000 Crore Surge

Jun 24, 2024, 03:47 AM

The Securities and Exchange Board of India (SEBI) has launched an investigation into Sandeep Tandon-owned Quant Mutual Fund over suspicions of front-running. SEBI conducted search and seizure operations at the fund's Mumbai headquarters. Front-running involves trading stocks based on advance knowledge of large, impending transactions that will affect stock prices, and it is illegal in India. Quant Mutual Fund, which saw its assets surge from ₹100 crore in 2019 to ₹90,000 crore, has confirmed receiving inquiries from SEBI and has assured full cooperation with the regulator. The fund, which currently manages assets worth ₹93,000 crore, has also issued a letter to its investors, emphasizing its commitment to delivering superior risk-adjusted returns despite the ongoing probe. Stocks where Quant Mutual Fund holds significant stakes are expected to be under pressure following the investigation. The initial report of SEBI's suspicions was published on June 23.