Quant Mutual Fund, under Securities and Exchange Board of India (SEBI) scrutiny amid front-running allegations, has issued clarifications to its investors regarding the recent developments.

What Happened: In its latest mail, Sandeep Tandon-led Quant Mutual Fund said SEBI’s investigation has not been completed, adding that the market regulator collected data from the fund and is analysing the data.

The fund said it has not received further communications from the regulator following the initial enquiry. It also underscored that its offices and personnel are working normally without any disruption.

Tandon said in a webinar that as of June 26, the fund has invested about 53.5% of its assets under management (AUM) of ₹88,270 crore are invested in liquid assets, which include large-cap stocks, treasury bills, government securities, gold and silver.

“We have noticed that certain media reports are creating narratives that do not accurately reflect the true picture. Many of these narratives are driven by agendas that are detached from the truth, despite our efforts to provide clear and accurate information in response to specific queries,” Tandon said.

He claimed that investors who may have taken knee-jerk decisions following the reports had probably “over-reacted”.

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In the past three days, the asset management company (AMC) saw equity outflows of 1.5% of its overall portfolio and inflows into the fund have remained steady.

The asset management company said it would be able to deliver normal returns despite the enquiry as it is functioning normally.

Why It Matters: Quant Mutual Fund has been under immense scrutiny after it confirmed a SEBI inquiry on June 24 and pledged full cooperation with the regulator.

The fund house has been under the scanner after allegations of front-running surfaced. The controversy attracted different responses from the industry. Investor recommendation platform Prime Investor advised its investors to exit the mutual fund.

Meanwhile, Quantum Mutual Fund said on social media that it is different from Quant Mutual Fund adding that there is a pending lawsuit against Quant for using similar names and causing confusion.

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