Quant Mutual Fund: Shashi Kataria takes charge as CFO in place of Harshal Patel

Quant Mutual Fund, which was in the news last month due to Sebi’s investigation on charges of front running, on Friday told its investors that Chief Financial Officer (CFO) Harshal Patel has resigned and  Shashi Kataria has taken charge. 

Quant Mutual Fund said, “Mr. Shashi Kataria has been appointed as Chief Financial Officer, Operations Head and Executive Director of Quant Money Managers Limited with effect from July 01, 2024, in place of Mr. Harshal Patel who has resigned due to his reasons.”

It further added that: "Contrary to rumours and false narratives circulating in media, Quant Money Managers Limited hereby wishes to clarify that Mr. Harshal Patel tendered his resignation on 19th February, 2024 and the last day of his service with the company was on 19th May, 2024. His last held position was Chief Financial Officer for Wuant AMC. Mr. Shashi Kataria joined us on 10th June, 2024. The Board Meeting was convened on 1st July, 2024 and was appointed as Chief Financial Officer, Operations Head and Executive Director of quant Money Managers Limited."

Shashi Kataria had formerly worked with PPFAS AMC as CFO, COO and Director. He was also worked for DSP Blackrock Investment Managers as Manager Finance.

Kataria has 20 years of overall experience in accounting, audit, direct and indirect taxation, financials & MIS, payroll, and labour law compliance, of which 13 years are from the Indian mutual fund industry.

Markets watchdog Sebi conducted a search operation at Quant Mutual Fund on suspicion of engaging in front-running activities within the Rs 93,000 crore fund. The search and seizure operations were reportedly carried out at the offices of Quant Mutual Fund in Hyderabad and Mumbai.

The commencement of this investigation raised concerns among numerous investors regarding the protection of their investment portfolios and prompted a sense of unease within the investment community.

In response to media reports regarding the investigation, the asset management company (AMC) affirmed its commitment to regulatory compliance, stating that Quant Mutual Fund, as a regulated entity, remains dedicated to collaborating with SEBI throughout any examination process. The AMC assured its cooperation by offering the necessary support and ongoing provision of data to SEBI as required.

Front-running refers to the unethical practice of trading in the stock market based on privileged information obtained from a broker or analyst before it becomes available to the general public. This conduct is considered illegal and can result in severe consequences.

During the last week of June, Quant Mutual Fund experienced its first weekly net outflows of 2024, amounting to Rs 2,800 crore. A report by Value Research Online highlighted that this outflow marked the end of a six-month period characterised by consistent inflows for the fund. Between June 24 and June 30, a net outflow of Rs 2,800 crore, approximately 3% of the assets under management (AUM) from the previous week, was observed.