Quant MF gets new CFO, says move unrelated to Sebi investigation

Says previous CFO Harshal Patel had resigned in February

Quant Mutual Fund (MF) has informed investors that its chief financial officer (CFO) Harshal Patel has resigned “due to personal reasons”.

In a social media post, the fund house clarified that Patel’s resignation had no link to the investigation by the Securities and Exchange Board of India (Sebi).

The firm is under Sebi’s scanner over a suspected front-running case. The fund house said Patel resigned months before the front-running investigation came to the fore.

“Harshal Patel tendered his resignation on February 19, 2024, and the last day of his service with the company was on May 19, 2024,” the firm said.

In a notice-cum-addendum, Quant MF has said that Shashi Kataria took over as the new CFO on July 1.

On June 24, Business Standard reported that the markets regulator is investigating Quant Mutual Fund for alleged irregularities in investment-related activities by managers and that it conducted searches at the fund house’s offices.

Quant MF, which manages nearly Rs 90,000 crore worth of assets, has confirmed that it has received inquiries from Sebi and that it was sharing the data sought by the regulator. The development had led to some outflows from its schemes but it was limited to around 1.5 per cent of the total assets under management.

According to the fund house, Kataria has 20 years of experience in accounting, audit, direct and indirect taxation, financials and MIS, payroll, and labour law compliance, out of which 13 years are from the MF industry. "His last assignment was with PPFAS Asset Management Private Limited as CFO, COO, and director. He was previously associated with DSP Blackrock Investment Managers," it stated in the addendum.