Wednesday, 27 July 2016

Treat HFCs on par with private banks: Assocham to SEBI

Assocham has asked SEBI to treat housing finance companies (HFCs) on par with the private banks and public financial institutions (PFIs).



Assocham said in a statement on Tuesday that the move will strengthen the role of HFCs in the government's mission of "Housing for All by 2022".

 "Debt investments in HFCs should be exempted from sectoral limits and securities issued under AAA rating for long-term instruments and A1+ for short-term instruments by HFCs should be treated on par with AAA rated securities and certificate of deposits issued by private banks," Assocham said in a communication to the Securities Exchange Board of India (Sebi) Chairman U.K. Sinha.

 Assocham said that mutual fund investments in AAA rated pass through certificates (PTCs) backed by mortgages should not be considered as exposure to the HFCs as these are serviced and secured by underlying pools of granular secured housing loans.


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