×

MARKET EYE-Housing finance companies gain on SEBI measures

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

* Previously housing finance companies had been included as part of SEBI's broader 30 percent cap on debt investments in the financial sector. * As a result, funds had typically preferred to invest in bigger financial companies, such as lenders and insurers. * Giving housing finance companies their own cap on investments should 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)