Mutual Funds Exposure in HDFC's Debt Instrument at 3.9%

New Delhi: Country's largest mortgage firm HDFC Ltd today said mutual funds exposure in its debenture and commercial papers is 3.9 per cent of total debt asset under management.

The total Debt Assets Under Management (AUM) of mutual funds stood at Rs 8,80,672 crore at the end of December 2015.

"Mutual Funds invest in non-convertible debentures and commercial paper issued by HDFC Limited. As at December 31, 2015, the total amount invested by mutual funds in non-convertible debentures and commercial paper issued by HDFC Limited is 3.9 per cent of the total debt AUM," the company said in a statement.

The single issuer limit stipulated by SEBI for mutual funds is 10 per cent of the net asset value of a scheme, it said.

Yesterday, Sebi tightened its norms for mutual funds' exposure to riskier corporate bonds including by capping the investment limit in bonds of a single company at 10 per cent with a view to safeguard interest of investors.

The single sector exposure limit would also be lowered from 30 per cent to 25 per cent, while group-level investment limits of 20-25 per cent have been also been introduced for the mutual funds investing in debt securities.

Further, it said, as per this data the exposure of mutual funds to NBFCs is Rs 1,31,391 crore which constitutes 14.9 per cent of the AUM.

"The single sector exposure limit stipulated by SEBI for mutual funds is 30 per cent of the net asset value of a scheme for NBFCs (inclusive of 5 per cent for Housing Finance Companies)," it said.