A US-based fund looks to knock on PMO’s door in HDFC Bank row

Nifty24, 334.55115.5. Motilal Oswal Midcap Fund Direct-Growth.

Key points

• (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.).
• Hdfc bankinvestors approach Prime Minister's OfficeCarlisle life settlement productcapital protection investment concernsDubai Financial Services Authority complaintslegal action against HDFC BankDIFC regulatory issuesReserve Bank of India.
• One of the investors alleged the Carlisle-linked product was presented to them as a capital protection, insurance-linked investment with past returns of 12-19% a year.
• Investors are planning to write to the Prime Minister's Office this week.
• The Economic Times daily newspaper is available online now.

Nifty24, 334.55115.5. Motilal Oswal Midcap Fund Direct-Growth. The Economic Times daily newspaper is available online now. Carlisle Investors to approach PMO over alleged HDFC Bank mis-selling. Carlisle Investors to approach PMO over alleged HDFC Bank mis-selling. ET BureauLast Updated: Aug 25, 2026, 11: 53: 00 PM IST.

Investors are planning to write to the Prime Minister's Office this week. They allege mis-selling and substantial losses from a Carlisle product. The group additionally intends to approach the Reserve Bank of India. They are exploring legal action against HDFC Bank for alleged client-suitability lapses.

Dubai: A group of investors who purchased Carlisle's life settlement product through HDFC Bank's Dubai operations are set to write to the Prime Minister's Office (PMO) this week, alleging mis-selling, substantial losses and years long denial of redemption. The group of more than 75. It accounts for more than $13.5 million in principal investment in Carlisle's Luxembourg Life Fund, is consolidating complaints and exploring legal action against HDFC Bank, some of the investors informed ET. It additionally aims to approach the Reserve Bank of India and Central Bank of Bahrain while some investors have already independently complained to the Dubai Financial Services Authority (DFSA). "We are planning to write to the PMO this week, highlighting the serious client-suitability lapses at HDFC Bank in Dubai, concerns around leverage, disclosures, investor losses, and denial of liquidity, " remarked Hitesh Bhatia, a Dubai-based former banker who invested in the fund in 2019. "We will request that the matter be referred to the appropriate regulatory and investigative authorities."

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While leverage offered alongside the investment significantly rose their exposure and losses during the Covid-19 market crash, the move follows years of disputes over the fund, with investors alleging that the insurance-linked product was marketed as a capital protection investment. Live Events.

One of the investors alleged the Carlisle-linked product was presented to them as a capital protection, insurance-linked investment with past returns of 12-19% a year. When it restricted the branch from onboarding new clients and conducting specified financial-services activities with them, after regulatory worries.: EAC moots consolidation to create a few sizeable banks Bhatia remarked the investor group is additionally planning to reach out to the RBI, file a complaint with the Central Bank of Bahrain, and hire a lawyer to take up the matter with DFSA, the move comes in the backdrop of DFSA's action against HDFC Bank's DIFC branch in 2025, over alleged mis-selling of high-risk Credit Suisse AT1 bonds to retail customers. "We have written a letter to the HDFC Bank and given them time till August 31 to respond. In case they do not respond, we will go for the legal recourse, " he remarked. DFSA is the independent regulator of all financial services conducted through the Dubai International Financial Centre (DIFC), a federal financial freezone in Dubai. The investor cited above shared correspondence and records with ET, and alleged that HDFC Bank offered leverage of three to five times the amount of deposits blocked with the bank for investment in the products. Add Now!

For now, a US-based fund looks to knock on PMO's door in HDFC Bank remains the part of the story worth watching, and further updates are likely as more details are confirmed.