|1. Which company is a Housing Finance Company (HFC) ?
A HFC is a company which mainly carries on the business of housing finance or has one of its main object clause in the Memorandum of Association of carrying on the business of providing finance for the housing.
2. What are the requirements for commencing housing finance business by an HFC under the NHB Act?
3. Whether an HFC requires registration from NHB apart from Registrar of Companies ?
4. Whether an HFC can commence business immediately after making an application for registration with NHB.
5. Whether an HFC can conduct business without obtaining certificate of registration from NHB ?
6. Whether an existing HFC (existing as on June 12,2000) without minimum NOF and registration can continue the housing finance business ?
7. How can an HFC obtain a certificate of registration from NHB ?
8. What are the considerations for grant or refusal of a certificate of registration by NHB ?
9. Whether an appeal lies against the order of rejection of certificate of registration and if so with whom?
10. Can the certificate of registration once granted be cancelled by NHB?
(e) where it has been prohibited from accepting deposit by an order made by NHB and such order has been in force for a period of not less than three months.
11. Whether an appeal lies against the order of cancellation of certificate of registration by NHB and if so to whom ?
12. What is meant by Net Owned Fund (NOF) ?
(b) further reduced by the amounts representing –
(2) the book value of debentures, bonds, outstanding loans and advances (including hire-purchase and lease finance) made to, and deposits with,-
“subsidiaries” and “companies in the same group” shall have the same meanings assigned to them in the Companies Act, 1956.
|Acceptance of Deposits|
1. What is a public deposit ?
2. Can all HFCs accept public deposits ?
(i) obtaining certificate of registration from NHB valid for acceptance of deposits; and
3 Is there any ceiling on the maximum amount of public deposit which can be accepted by an HFC?
4. Is credit rating compulsory for acceptance of public deposits by an HFC?
5. What are the credit rating agencies approved for the above purpose ?
6. Is there any ceiling on the rate of interest which can be offered by an HFC on public deposits ?
7. Is there any limitation/ restriction on the period for which public deposit can be accepted by a HFC?
8. Whether a depositor can withdraw his deposit prematurely. If so, are there any conditions attached to the same ?
9. Can an HFC on its own repay the deposit prematurely ?
10. Are public deposits of HFCs guaranteed by NHB ?
11. Can an HFC provide nomination facility to its depositors ?
12. What are the remedies available to a depositor when the HFC does not re-pay the deposits on maturity ?
13. What details is an HFC required to furnish in the application form soliciting public deposits?
|1. What are the provisions for regulation of HFCs under the National Housing Bank Act, 1987?
The provisions for regulation of the HFCs as provided under the NHB Act, 1987 are:
2. Are there any directions issued by NHB to HFCs under the NHB Act, 1987?
3. What is the methodology adopted by NHB to regulate the HFCs under the NHB Act, 1987 and Housing Finance Companies (NHB) Directions, 2001?
4. What are the periodical returns, statements, etc. required to be submitted by the HFCs to NHB?
5. What action can NHB take against the HFCs not complying with the provisions of the Act or the Housing Finance Companies (NHB) Directions, 2001?
As per the NHB Act, 1987, NHB is empowered to take the following actions:
6. What are the provisions under the NHB Act, 1987 and Housing Finance Companies (NHB) Directions, 2001 for safeguarding the interest of the depositors?
Some of the safeguards under the NHB Act, 1987 and Housing Finance Companies (NHB) Directions, 2001 are enumerated below:
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