SEBI Investigating Quant MF Front-Running Case: Quantum Mutual Fund clears mix-up, says we’re not Quant in trouble

The Quant Mutual Fund front-running case has not left investors in the Indian stock market indifferent. While market regulator Securities Exchange Board of India (SEBI) has recently raided Sandeep Tandon’s Quant Mutual Fund due to alleged front-running activity, another fund house has landed on the wrong side of the law due to mistaken identity.

In response to the confusion caused by having the same name as the Quantum Mutual Fund under investigation by SEBI, Quantum Mutual Fund on Thursday issued a clarification, stating it has no association with the alleged fraudulent scheme.

“This is to clarify that Quantum Mutual Fund and Quant Mutual Fund are two different mutual fund houses,” Quantum Mutual Fund posted recently on the social media platform X.

The fund house also disclosed that it had moved the Mumbai High Court, praying for an order to restrain Quant MF from using the trade name Quant Mutual Fund, which was similar to the trade name Quantum Mutual Fund.

This suit is still before the High Court, as was noted by the company in its response to the petition.

“Besides, we have released several statistical explanations to investors, distributors, and brokers regarding the confusion with a similar-sounding name by another mutual fund house, which was established 12 years after launching Quantum Mutual Fund,” it said.

At the same time, Sebi has interrogated the dealers of Quant MF as well as persons linked to the case, and the alleged illicit gains of front-running were estimated at Rs.20 crore.

Thus, the chief executive of Quant Mutual Fund, Sandeep Tandon, has said that the allegations are greatly exaggerated and investors in the fund should not sell their stocks in a panic.

Again, in a statement released on Monday, the company said that it intended to comfort clients by stating that Quant Mutual Fund is a registered fund organisation and that they are happy to fully cooperate with the regulator at any point in time.