BY SPEED POST
NHB(ND)/DRS/DIR-23-2008/2110/2008
April 24, 2008


TO ALL REGISTERED HOUSING FINANCE COMPANIES


Dear Sir,

AMENDMENT TO HOUSING FINANCE COMPANIES (NHB) DIRECTIONS, 2001


It is herby advised that directions contained in paragraphs 2 & 26 of the Housing Finance Companies (NHB) Directions, 2001 have been amended/modified vide Notification No. NHB.HFC.DIR.23 /CMD/2008 dated April 24, 2008 with immediate effect.

2. A copy of the Notification is enclosed for ensuring necessary compliance by all concerned.


Yours faithfully
(Athmaram Mudiam)
Regional Manager (Policy)
Department of Regulation & Supervision


Encl: a/a

National Housing Bank (Wholly Owned by the Reserve Bank of India) New Delhi Direction No. NHB.HFC.DIR. 23/CMD/2008 dated April 24, 2008 The National Housing Bank being satisfied that, in the public interest it is necessary so to do, hereby in exercise of the powers conferred on it 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:- I. In chapter I, after sub-paragraph (m) of Paragraph 2 of the Housing Finance Companies (NHB) Directions, 2001 the following new sub-paragraph shall be inserted, namely; “(ma) Innovative perpetual debt means hybrid debt issued in accordance with the terms and conditions stipulated in the Circular issued by National Housing Bank in this regard.” II. In chapter III, after item No. 2(d) of ‘Explanations', to Paragraph 26 of the Housing Finance Companies (NHB) Directions, 2001, the following shall be inserted as 2 (e) ; namely, “e) HFC's investments in innovative perpetual debt of other HFCs/banks/financial institutions” 100 (S. Sridhar) Chairman & Managing Director