HDFC Bank shares: Carlisle investors to approach PMO over alleged mis-selling, says report

Shares of HDFC Bank Ltd are in focus on Wednesday after a media report said a group of investors who bought Carlisle's life settlement product through the bank's Dubai operations plans to write to the Prime Minister's Office this week, alleging mis-selling, substantial losses and years-long denial of redemption. The stock is down 27 per cent in 2026 so far.

According to The Economic Times, the group of more than 75 investors, accounting 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. The report said the investors also plan to approach the Reserve Bank of India and the Central Bank of Bahrain, while some have already independently complained to the Dubai Financial Services Authority. Business Today could not independently verify the report at this point.

The move comes amid years of disputes over the fund. Investors have alleged that the insurance-linked product was marketed as a capital-protection investment, while leverage offered alongside the investment significantly increased their exposure and losses during the Covid-19 market crash.

One investor, quoted by ET, alleged that the Carlisle-linked product was presented as a capital-protection, insurance-linked investment with past returns of 12-19 per cent a year.

Hitesh Bhatia, a Dubai-based former banker who invested in the fund in 2019, reportedly told ET:  "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. We will request that the matter be referred to the appropriate regulatory and investigative authorities."

The reported move also comes against the backdrop of DFSA action against HDFC Bank's DIFC branch in 2025 over the alleged mis-selling of high-risk Credit Suisse AT1 bonds to retail customers, when the branch was restricted.