Set housing finance companies as a separate sector- Assocham to SEBI
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) said that the market watchdog, SEBI, should categorize housing finance companies (HFCs) as a separate sector from Non-Banking Financial Companies (NBFCs) to attract more fund flows.
It suggested SEBI not to club HFCs with NBFCs for the purposes of sectoral limits proposed for investments by mutual fund schemes. HFCs lend at 10.5 percent for home loans and cannot compete with high yielding NBFCs.
The annual home loan disbursement in the India is about Rs 1.80 lakh crore and the mutual funds are one of the important sources of funding for HFCs.
If housing loans are given at lower rate of interest, then HFCs can increase the demand for new homes. This will in turn add to the creation of more housing stock in the country and reduce the shortage in urban housing stock.
Further, increased housing demand supports cement, steel and other construction-related industries and generate employment.
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Source: Zee news
ASSOCHAM, Cement, Construction, demand for new homes, funding, HFCs, home loan disbursement in the India, Home loans, housing finance companies (HFCs), market watchdog, Mutual funds, NBFCs, rate of interest, SEBI, sector, steel
