Quant mutual fund's net equity outflow stands at ₹1,398 crore after capital markets regulator Securities and Exchange Board of India (SEBI) probed the fund house for suspected front-running. According to a report by news website Moneycontrol, the fund house outflow is at 1.5 per cent of its total assets under management (AUM) after the SEBI stress test for front-running.
Quant has total AUM estimated at about ₹90,000 crore across 21 mutual fund schemes and is among the fastest-growing mutual funds in the country. It runs the third largest small-cap fund in the country with an AUM of ₹20,000 crore.
Quant mutual fund's net equity outflow stands at ₹1,398 crore after capital markets regulator Securities and Exchange Board of India (SEBI) probed the fund house for suspected front-running. According to a report by news website Moneycontrol, the fund house outflow is at 1.5 per cent of its total assets under management (AUM) after the SEBI stress test for front-running.
Quant has total AUM estimated at about ₹90,000 crore across 21 mutual fund schemes and is among the fastest-growing mutual funds in the country. It runs the third largest small-cap fund in the country with an AUM of ₹20,000 crore.
SEBI's probe into suspected front-running involving Quant Mutual Fund's ₹93,000 crore has left numerous investors anxious about the security of their investments. During its raid on Quant's Mumbai and Hyderabad offices, SEBI confiscated mobile phones, computers, and other digital devices in an effort to uncover the sources of leaking confidential information for illegal financial gains.
Meanwhile, the fund house had issued a clarification to its investors regarding Sebi's probe report on the issue, saying it was “fully committed to cooperate with the regulator”. Quant Mutual Fund, founded by Sandeep Tandon, received a mutual fund license from the capital markets regulator in 2017.
What is front-running?
Front-running is an illegal practice where fund managers or dealers or brokers who are aware of upcoming large trades place their own orders beforehand to profit from an anticipated price movement when the large trade is executed.
For instance, if a broker purchases shares in their personal account ahead of a known client's order to buy a significant amount of stock, it constitutes front-running. This practice is controversial as it exploits privileged information, potentially impacting market fairness and investor confidence.
This article taken by livemint.com
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