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SEBI Probe Quant Mutual Fund For Front-Running Case

Quant Mutual Fund, the fast-growing MF in the country, is under investigation by the market watchdog SEBI (Securities and Exchange Board of India).

What is Front Running in Mutual Funds?

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Front running is an illegal process where a person, typically an insider or a professional broker, executes orders on security for their own benefit, according to the knowledge of all the pending orders from the customers.

The surveillance system of SEBI found a case of front-running practices by entities who were well aware of what exactly Quant Mutual Fund was going to sell and purchase.

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What Happened in the Quant Mutual Fund Case?

Why is SEBI Investigating Quant Mutual Fund?

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SEBI is investigating Quant Mutual Fund for a front-running case to make sure that everything is secure within the securities market.

What does SEBI’s Investigation Process include?

The investigation work of SEBI includes the below process. Initial Inquiry Perform Detailed Inspection Supervisory Actions

Once the news about the SEBI investigation on front-running was announced, Quant Mutual Fund came forward and provided a clear and strong clarification. They declared that they would cooperate with SEBI on the probe.

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It will lead to the below impacts. – Redemptions will occur – The flow will reduce – There will be near-term underperformance

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How will this Quant Running Case Impact all the investors?

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