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Housing finance cos’ debt: MF cap raised to 15%

SEBI on Wednesday increased the exposure limits of MFs in debt instruments provided for housing finance companies (HFCs) to 15 per cent from 10 per cent. The move is to strengthen the affordable housing segment under the government’s Pradhan Mantri Aawas Yojana, said the SEBI circular. However, exposure in debt-oriented MF scheme continues to remain at 25 per cent at the sector level.

SEBI also stated that mutual funds need to ensure that the additional exposure to such securities issued by HFCs are rated AA and above, these HFCs are registered with the National Housing Bank and the total investment/ exposure in HFCs shall not exceed 25 per cent of the net assets of the scheme.

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