SEBI probes Quant mutual fund over front-running by employees

Quant Mutual Fund shook with a knee-jerk reaction when the Market regulator came knocking on their door accused the fund of potential front-running activities. The Securities and Exchange Board of India is undertaking an investigation into alleged irregularities in managing and investing investor money at one of the fastest-growing mutual funds in India, i.e., Quant Mutual Fund. Front-running involves trading on privileged information before clients and buying stocks at the individual level before the fund does, driving the price up and potentially impacting returns for investors. Front-running is considered unethical and illegal because it exploits confidential information and weakens market integrity. It breaches the trust and fiduciary duty that fund managers owe to their clients. Sebi's surveillance system identified a potential front-running case involving entities with prior knowledge of Quant Mutual Fund's buying or selling plans. Quant MF has become a prominent player i...