Mutual funds exposure in its debt instrument 3.9%: HDFC

New Delhi: Country's largest mortgage firm HDFC Ltd on Tuesday said mutual funds exposure in its debenture and commercial papers is 3.9 percent 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 percent of the total debt AUM," the company said in a statement.

The single issuer limit stipulated by SEBI for mutual funds is 10 percent 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 percent with a view to safeguard interest of investors.

The single sector exposure limit would also be lowered from 30 percent to 25 percent, while group-level investment limits of 20-25 percent 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 percent of the AUM.

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

Meanwhile Indiabulls Housing Finance Ltd said, "The total amount invested by MFs in our Bonds is 1.03 percent of Total Debt AUM of MFs. Total AUM of Debt Schemes of MFs is Rs 8.8 lakh crores, as per SEBI data. The MF Exposure to NBFCs is at Rs 1.31 lakh crores i.e. 14.89 percent of Total Debt AUM, as per SEBI Data."