National Housing Bank (NHB) hereby places a proposal relating to the issuance of Covered Bonds by Housing Finance Companies (HFCs) inviting feedback, views and comments from the industry participants and other stakeholders.

2. NHB proposes that HFCs may issue covered bonds subject to the aggregate value of assets in the cover pool being capped at 10% of the value of the total housing loan assets of the Company, as well as other requirements. The proposed requirements are set out inAnnexure I.

3. Comments may be forwarded, latest by May 15, 2013, to the Deputy General Manager, National Housing Bank, Head Office, Department of Regulation and Supervision, 3rd Floor, Core 5 A, India Habitat Centre, Lodhi Road, New Delhi-110 003 or emailed todrs@nhb.org.in