In an attempt to facilitate affordable housing projects in securing additional funds, SEBI has decided to increase additional exposure limits of mutual funds in Housing Financial Companies (HFCs) to 10% from the existing 5%. This would be over and above the current sectoral cap of 25%. SEBI said that the mutual funds should ensure that the additional exposure to securities issued by HFCs are rated AA and above, and these HFCs are registered with the National Housing Bank. The change comes into force with immediate effect.