PIL in Bombay HC seeks action against 'Mutual Fund Sahi Hai' ads by AMFI
The petition, filed by a chartered accountant, has alleged that AMFI was “recklessly propagating that mutual funds are right without any basis or rationale”
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Published: Dec 21, 2024 9:16 AM | 1 min read
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A Public Interest Litigation (PIL) had been filed in the Bombay High Court seeking directions to the Securities and Exchange Board of India (SEBI) to withdraw the permission granted to the Association of Mutual Funds in India (AMFI) for advertisements of mutual funds, according to media reports. The PIL has been filed by a chartered accountant.
Accepting the PIL, the Bombay HC on December 18 directed issuance of notice to SEBI and AMFI.
In the petition, the chartered accountant has alleged that AMFI was “recklessly propagating that mutual funds are right without any basis or rationale”.
“The ad campaigns are completely misleading with selective and distorted emphasis on positive features,” the petitioner alleged.
According to media reports, the petition states, “There is no element, whatsoever, of investor education or awareness in the ad campaigns propagated by AMFI. These ad campaigns do not highlight or mention about the features and characteristics of mutual funds, its limitations / constraints, etc., but only emphatically endorse and opine that mutual funds are right (sahi hai) without any basis or merits, with a small sidelined disclaimer.”
The petitioner has added that such endorsements are commercial in nature and meant only to benefit the members of AMFI, with the least concern for investor protection.
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