PIL in Bombay HC Challenges ‘Mutual Funds Sahi Hai’ Ads by AMFI

A public interest litigation (PIL) filed in the Bombay High Court claims that the Association of Mutual Funds in India (AMFI) runs “misleading” and “deceptive” advertisements under the tagline “Mutual Funds Sahi Hai.” The petitioner, a chartered accountant, alleges these ads promote mutual funds recklessly, with no factual basis or rationale.

Criticism of Campaign Content

The petitioner argues that AMFI’s ad campaigns selectively highlight positive aspects of mutual funds while ignoring their limitations. They claim the ads are baseless and fail to educate investors about the risks and constraints associated with mutual funds. Instead, they are said to solely endorse mutual funds with a small, easily overlooked disclaimer.

Commercial Intent vs. Public Interest

Drawing comparisons with campaigns by institutions like the RBI (Reserve Bank of India),  NSE (National Stock Exchange), and SEBI (Securities and Exchange Board of India), the PIL claims that these organisations focus on public education without commercial motives. In contrast, AMFI’s ads allegedly prioritise benefiting its members over protecting investors.

Court’s Action

On December 18, the Bombay High Court appointed an amicus curiae (independent legal expert) to assess the case and issued notices to Sebi and AMFI, considering the public interest involved.

This PIL raises questions about the balance between advertising and investor protection in the financial sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.