SEBI eases Mutual Fund exposure limit for HFCs

SEBI eased the the investment limit for HFCs (Housing Finance Companies) in debt mutual funds. An additional exposure not exceeding 10% of net assets of the scheme shall be allowed only to HFCs as part of financial services sector for prudential limits in debt oriented schemes.

The relaxation would be subject to certain conditions such as:

  • The securities issued by HFCs are rated ‘AA’ or above
  • The HFCs should have been registered with the National Housing Bank (NHB)
  • The total investment in HFCs shall not exceed 30% of the net assets of the scheme



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