Mumbai, Oct. 6: Sebi today decided to relax the investment limit for housing finance companies in debt mutual funds.
The decision to relax the exposure norms for such finance companies was taken at Sebi’s board meeting here.
“An additional exposure to financial services sector (over and above the existing 30 per cent) not exceeding 10 per cent of the net assets of the scheme in debt-oriented mutual fund schemes will be allowed by way of increase in exposure to HFCs only,” Sebi said.
According to the regulator, the decision has been taken after considering the important role played by housing finance companies in fulfilling the social objective of increased home ownership and supporting the economy by creating demand for the construction of new homes.
In a circular last month, Sebi had directed mutual funds to ensure that total exposure of their debt schemes in a particular sector shall not exceed 30 per cent of the net assets of the scheme.