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<h1>SEBI Raises Sector Exposure Limits for HFCs in Debt Mutual Funds to Boost Affordable Housing Initiatives.</h1> The circular issued by SEBI addresses the prudential limits on sector exposure for Housing Finance Companies (HFCs) within debt-oriented mutual fund schemes. The existing sectoral exposure limit is 25%, with an additional 10% for HFCs. This limit is now increased to 15% to support affordable housing initiatives under the Pradhan Mantri Aawas Yojana. The additional exposure is allowed only for HFCs rated AA and above and registered with the National Housing Bank. The total investment in HFCs must not exceed 25% of the scheme's net assets. The circular mandates appropriate disclosures in Scheme Information Documents and Key Information Memorandums.