No 'communication' from Sebi after initial inquiries: Quant MF
Quant Mutual Fund said the fund house has not received any 'communication' from the Securities and Exchange Board of India (Sebi) after initial inquiries. In an email communication to investors on June 27, the fund said the net redemptions from its schemes in the past three days was 1.5% of the equity assets under management of ₹88,270 crore as of June 26.
Quant schemes had liquid assets, which include large-cap stocks, T-bills, G-Secs, gold, and silver, worth approximately 53.5% of their total equity AUM, the asset manager said.
The regulator is probing Quant, one of the country's fastest-growing asset managers, for alleged front-running — an illegal practice of trading in stocks based on privileged information. The capital markets regulator, as part of its investigation, has conducted search and seizure operations at Quant's head office in Mumbai and at the address of the suspected beneficiaries in Hyderabad. The fund house, owned by Sandeep Tandon, confirmed the Sebi investigation without giving details.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-111326657»>
The news of the Sebi probe, which surfaced over the weekend, had triggered speculation of mass redemptions from Quant's schemes and of selling of mid-cap and small-cap stocks held by the fund house.
«We have not heard from the regulators after their visit and no one is stationed in our office,» said the email note on June 27 sent in the form of Frequently Asked Questions (FAQs).
