New Delhi, Jul 26: Assocham today sought respite for housing finance companies (HFCs) from markets regulator SEBI with a request to treat them at par with private banks and public financial institutions (PFIs).

"Given the government's focus on housing finance sector and the crucial role played by HFCs within this sector, SEBI's guidelines to mutual funds to reduce the additional exposure limit provided to housing finance companies came to us as a surprise.

"We urge you to kindly consider the socio-economic importance of the housing sector and its role in furthering the government's mission of Housing for All by 2022," Assocham President Sunil Kanoria said in a letter to SEBI chief UK Sinha.

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

It said that HFCs should be treated at par with private banks and PFIs and debt investments in HFCs should be exempted from sectoral limits.

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