It is true with some extra assumptions. If $f$ is projective and has connected and (EDIT) reduced fibers and $M$ is a line bundle that is trivial on every fiber, then $h^0(X_y, M)=1$ for every $y\in Y$. If $Y$ is integral, then it follows that $L:=f_*M$ is a line bundle and the natural map $f^*L\to M$ is an isomorphism.
rita
- 6.3k
- 1
- 29
- 39