SEBI has been approached for this purpose so that regulations are amended before the start of NHB's Rs 100 crore worth mortgaged backed securities issue, slated to hit the market in a few months time, top NHB officials said. Currently, SEBI regulations allow mutual funds to invest only in securities where the underlying is a saleable asset. "We have initiated discussions with SEBI for an amendment in the mutual funds regulations," general manager of NHB, R V Verma said.

Company officials said they were also targeting banks and financial institutions as prospective investors for the issue. NHB has already received credit rating agency, Crisil's Triple A rating for the securitisation programme, which is expected to hit the market in a few months from now.

As per the securitisation programme, NHB would convert thehousing loans of Housing Development Finance Corporation, LIC Housing, Canfin Housing and Dewan Housing Finance in the four states of Karnataka, Tamil Nadu, Gujarat and Maharashtra.

These states have been chosen as they had reduced stamp duty on the transfer of securities to a mere 0.1 per cent to popularise the transactions in housing loans securitisation programme. NHB officials said ICICI Securities and SBI Caps had been appointed for managing the Rs 100 crore housing loan securitisation programme. Though interest rates for the issue had not been finalised as yet, it would be attractive for investors.