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Sebi eases norms for debt MF investment in housing finance cos

Debt mutual funds can now invest up to 15 percent of their total net assets in housing finance companies with Sebi easing the regulations in this regard.

February 22, 2017 / 21:31 IST
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Debt mutual funds can now invest up to 15 percent of their total net assets in housing finance companies with Sebi easing the regulations in this regard.

The norms have been relaxed as part of efforts to channelise more funds towards affordable housing activities.

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Debt mutual funds were allowed to have an exposure of only up to 10 percent to housing finance companies. This has been increased to 15 percent with the immediate effect subject to certain conditions.

In a circular, Sebi said mutual funds would need to ensure that the additional exposure to the securities issued by HFCs have high investment grade rating. Besides, the entities should have been registered with the National Housing Bank (NHB).