SEBI’s data collection was a court-approved search: Quant Mutual Fund

Quant Mutual Fund has informed its investors that the recent data collection search by the Securities and Exchange Board of India (SEBI) was a part of the court-approved search. So, the SEBI’s search last month was differed from a routine enquiry. The fastest-growing Indian mutual fund house informed about the nature of SEBI’s search in its letter issued to its investors on Saturday, 13th July 2024.

Quant Mutual Fund took a proactive step to keep its investors informed and involved. The fund issued a letter via email, stating, “We would like to clarify that the data collected by the regulator was not part of any regular process but was part of a court-approved search and seizure operation with respect to an ongoing investigation initiated by SEBI.” This direct communication aims to keep our investors informed and involved in the process.

In the FAQs Corrigendum on July 13, as published by BT Money Today, Quant Mutual Fund was asked whether anyone was convicted in the recent Quant Mutual Fund-SEBI row. The Asset Management Company (AMC) replied, “No. It is the regulator’s job to collect and analyse data continuously. We have not received any communication after initial enquiries.”

In its note to its clients, Quant Mutual Fund reaffirmed its unwavering commitment to regulatory compliance. The fund stated, “Recently, Quant Mutual Fund has received inquiries from SEBI, and we want to address any concerns you may have regarding this matter. We want to assure you that Quant Mutual Fund is a regulated entity, and we are always fully committed to cooperate with the regulator throughout any review. We will provide all necessary support and continue to furnish data to SEBI on a regular and as-needed basis.” This commitment is aimed at instilling a sense of security and confidence in our investors.

Quant Mutual Fund-SEBI row

On 23rd June 2024, news reports of the Quant Mutual Fund-SEBI row, which refers to the ongoing investigation by SEBI into certain practices at the fund, erupted. These news reports said that SEBI is probing front-running charges against some Quant Mutual Fund AMC managers. After this, the AMC stated to its investors that it responded to the queries received by the Indian capital market regulator SEBI, saying, “We will provide all necessary support and continue to furnish data to SEBI on a regular and as-needed basis.”

With assets under management (AUM) of 930 billion Indian rupees ($11 billion), Quant Mutual Fund is the fastest-growing fund house in India. It ranks 18th in terms of AUM out of 44 asset managers in India, which is a significant achievement considering the competitive landscape of the Indian mutual fund industry.

Quant Mutual Fund is an active investor in small cap and mid cap stocks, whose benchmark indexes have soared 69.48% and 59.28% respectively over the past 12 months. This outstanding performance underscores our commitment to delivering value to our investors and should reassure them about the strength of their investments.

(With inputs from Reuters)