Housing finance stocks gain on Sebi move

Shares of housing finance companies surged up to 4 per cent today after market regulator Sebi eased norms for debt mutual funds investment in these firms.
The scrip of Dewan Housing Finance surged 4.22 per cent, GIC Housing Finance rose by 1.44 per cent, Gruh Finance gained 1.25 per cent and LIC Housing Finance was up 1.09 per cent on BSE.
Debt mutual funds can now invest up to 15 per cent of their total net assets in housing finance companies with Sebi easing the regulations in this regard.
The norms have been relaxed as part of efforts to channelise more funds towards affordable housing activities.

Debt mutual funds were allowed to have an exposure of only up to 10 per cent to housing finance companies. This has been increased to 15 per cent with the immediate effect subject to certain conditions.