New Delhi: 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.

In a circular, Sebi said mutual funds would need to ensure that the additional exposure to the securities issued by HFCs have high investment…