NHB amends Housing Finance Companies – Approval of Acquisition or Transfer of Control (National Housing Bank) Directions, 2016

Jul 24, 2018 | by Avantis RegTech Legal Research Team


The National Housing Bank (NHB) vide Notification dated July 19, 2018 has amended Housing Finance Companies –Approval or Transfer of Control (National Housing Bank) Directions, 2016 with immediate effect.

The Housing Finance Companies– Approval of Acquisition or Transfer of Control (National Housing Bank) Directions, 2016 is amended in the following manner, namely:

·         Amendment in Paragraph 3

Item (b) of clause (i) of Paragraph 3 of the Housing Finance Companies – Approval of Acquisition or Transfer of Control (National Housing Bank) Directions, 2016, has been substituted as under:

“(b) Any change in the shareholding of an HFC accepting/holding public deposits, including progressive increases over time, which would result in acquisition / transfer of shareholding of 10 percent or more of the paid up equity capital of the HFC by/to a foreign investor

or

Any change in the shareholding of an HFC, including progressive increases over time, which would result in acquisition / transfer of shareholding of 26 per cent or more of the paid up equity capital of the HFC.

Provided that, prior approval would not be required in case of any shareholding going beyond 10% or 26%, as applicable, due to buyback of shares/reduction in capital where it has approval of a competent Court. However, the same is to be reported to the National Housing Bank not later than one month from the date of its occurrence.”

 

·         Amendment to Paragraph 5:

In paragraph 5 of the Housing Finance CompaniesApproval of Acquisition or Transfer of Control (National Housing Bank) Directions, 2016, the following shall be inserted at the end:

“Provided that nothing contained in this paragraph shall apply in case of any change in shareholding of an HFC accepting/holding public deposits, including progressive increases over time, which would result in acquisition/transfer of shareholding of 10 percent or more and less than 26% of the paid up equity capital of the HFC by/to a foreign investor.”

 

[Notification No. NHB.HFC.ATC.DIR.2/MD&CEO/2018 -]

URL: https://nhb.org.in/wp-content/uploads/2016/10/Notification-No.-NHB.HFC_.ATC_.DIR_.2-MDCEO-2018.pdf


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