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.
