Exposure to housing finance companies cannot exceed 10% of the net assets of the scheme.
Considering the important role played by Housing Finance Companies (HFCs) in fulfilling the social objective of increased home ownership and supporting the economy by creating demand for construction of new homes, SEBI has allowed an additional exposure to financial services sector (over and above the existing 30%) not exceeding 10% of the net assets of the scheme in debt oriented mutual fund schemes by way of increase in exposure to HFCs only, subject to the condition that such securities issued by HFCs are rated AA and above and these HFCs are registered with National Housing Bank (NHB). However, the total investment in HFCs cannot exceed 30% of the net assets of the scheme.
Earlier, SEBI had said that total exposure of debt funds in a particular sector cannot exceed 30% of the net assets of a scheme. It has given one year’s time to AMCs to comply with this rule.
