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MARKET EYE-Housing finance companies gain on SEBI measures

* Shares in Indian housing finance companies gain after marketregulator Securities and Exchange Board of India (SEBI) sayswill allow debt-oriented mutual funds to invest up to 10 percentof their net assets in companies in the sector.

* Previously housing finance companies had been included as partof SEBI's broader 30 percent cap on debt investments in thefinancial sector.* As a result, funds had typically preferred to invest in biggerfinancial companies, such as lenders and insurers.* Giving housing finance companies their own cap on investmentsshould steer money into the sector and lower funding costs,analysts say.* HDFC Ltd

gains 0.6 percent, LIC Housing Finance

rises 1.5 percent, while Dewan Housing Finance

also gains 2.4 percent.

(manoj.dharra@thomsonreuters.com)