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Investment by HFCs in Land buildings

 
Investment by HFCs in Land buildings – Dec 10th, 2003

NATIONAL HOUSING BANK

(Wholly owned by the Reserve Bank of India ) New Delhi

THE HOUSING FINANCE COMPANIES (NHB) DIRECTIONS, 2001

Direction No. NHB.HFC.DIR.7/CMD/2003 dated 10 th December 2003

The National Housing Bank having considered it necessary in the public interest and being satisfied that, for the purpose of enabling the National Housing Bank to regulate the housing finance system of the country to its advantage, it is necessary so to do, hereby in exercise of the powers conferred by Sections 30A and 31 of the National Housing Bank Act, 1987 (53 of 1987) and all the powers enabling it in this behalf, directs that the Housing Finance Companies (NHB) Directions, 2001 shall, with immediate effect, be further amended in the following manner, namely:

In paragraph 27 clause (a) of sub-paragraph (1) shall be substituted by the following, namely,-

“(a) invest“ in land or building, except for its own use, an amount exceeding twenty percent of its capital fund.

Provided that such investment over and above ten percent of its own fund shall be made only in residential units.

Note:

‘Capital fund’ means the aggregate of ‘tier-I and ‘tier-II capital’.”

Sd/-

(V. Sridar)

Chairman & Managing Director