Finance News
What is Front Running in Mutual Funds?
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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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