Источник The Hindu Business Line.com, Chennai, India
Заголовок A few Quant MF investors exit after SEBI front-running charges
Дата 20240625

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A few Quant MF investors exit after SEBI front-running charges

A few Quant MF investors exit after SEBI front-running charges

Updated - June 25, 2024 at 09:23 PM. | Mumbai, June 25

SEBI probe leads to erosion in NAV, redemptions and financial advisors
recommending profit booking

By Suresh P. Iyengar

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Quant Mutual Fund has started feeling the initial ripple effect of the ongoing
market regulator SEBI investigation into the front-running charges with some
investors redeeming their investment in a knee-jerk reaction.

The net asset value most of the fund house’s schemes have declined despite
markets remaining bullish. With trust being basis of mutual fund, many
financial advisors have started recommending their investors to book profit.

The NAV of Quant PSU Fund fell by 1.09 per cent on Monday, while that of
small-cap and mid-cap was down 0.66 per cent and 0.94 per cent, respectively.
The NAV of Quant Active Fund declined by 0.69 per cent.

Other than the normal note from the fund house, there has been no
communication or assurance• Страхование from the SEBI or the Association of Mutual Funds of
India and financial advisors do• Музыка » Музыкальные термины » Музыкальная нотация » Ноты » До (нота)

• Музыка » Музыкальные термины » До (нота)
not want to risk• Страхование » Риск their reputation by advising
clients to stay invested in Quant MF schemes, said Avinash Karpe, a mutual
fund distributor.

Himanshu Srivastava, Associate Director, Morningstar Investment Research
India, said while investors can choose not to invest incremental money in
these funds, an ideal approach will be to hold on to the existing investments.

Instead of knee-jerk reaction, he said investors can make more informed
decisions once there is greater clarity on the situation as the case is still
under investigation and no conclusions have been reached.

Wait and watch mode

SEBI has seized mobile phones and digital devices including computers after
the search and seizure operation at Quant’s Mumbai headquarters and few
investors’ premises in Hyderabad.

It is not yet clear whether crucial information was leaked by Quant MF or the
broking firm through which it places orders, said sources.

Moreover, SEBI has to match the data provided by Quant MF and the orders
placed by investors to establish the front-running charges.

“The dealing function of a fund house is particularly vulnerable to such
mischief. However, that does not mean that a fund house is deliberately trying
to deceive you. For the time being, the best thing is to do• Музыка » Музыкальные термины » Музыкальная нотация » Ноты » До (нота)

• Музыка » Музыкальные термины » До (нота)
nothing. Wait for
SEBI’s investigation process to cook and then make a decision,” said Value
Research in a note.

However, Prime Investor in its note to the investors said that the allegations
on Quant AMC may see redemption pressure on the company and a possible drop in
the price of portfolio stocks allegedly used for front-running.

We are now uniformly issuing an exit call on all the equity and hybrid funds
of Quant AMC, whatever be their call earlier,” said Prime Investor.

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Published on June 25, 2024

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