Front-Running Probe Ensnares $11 Billion Fund Quant Mutual (1)

A probe into a rising star of India’s fast-growing mutual fund world for alleged front-running is putting a fresh spotlight on the nation’s attempts to police its booming stock markets.

India’s securities regulator is examining trades by Quant Mutual Fund employees based on alerts generated by the regulator’s surveillance system, people familiar with the matter said, adding that the probe could reach beyond top traders. The multi-asset investment manager said in a statement that it has received inquiries from the regulator and is fully committed to complying with the review.

The investigation is the latest example of the challenges emerging ...