SEBI Raids Quant Mutual Fund On Front-Running Suspicions: Report

The Securities and Exchange Board of India (SEBI) has reportedly carried out search and seizure operations at Quant Mutual Fund, owned by Sandeep Tandon.

What Happened: SEBI conducted operations at two locations, including the Mumbai headquarters of Quant Mutual Fund and a suspected beneficial ownership address in Hyderabad, Moneycontrol reported. The operation was conducted on the grounds of suspected front-running activities, the reported said citing sources.

SEBI questioned Quant dealers and individuals linked to the case on Friday, the report added.

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Quant Mutual Fund, established by Tandon, has seen rapid growth, with assets rising from ₹100 crore in 2019 to over ₹90,000 crore currently. The fund was issued a mutual fund license by SEBI in 2017.

Front-running, an illegal practice where fund managers, dealers, or brokers aware of impending large trades place their own orders first to profit when the large order is executed and moves the stock, is the focus of the investigation. SEBI has been escalating its search and seizure operations to gather definitive evidence to expose complex transactions that allow unethical entities to evade due to the high burden of proof required by law.

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Posted In: GovernmentMutual FundsRegulationsMarketsQuant Mutual FundSandeep Tandon