MISCELLANEOUS - Housing Finance Regulatory

Ozg Regulatory Affairs Consultant &   Ozg Registration, Approval & Licensing Group   Ozg Center | Delhi | Mumbai | Kolkata | Chennai Phone # 0091-98.11.41.58.31-37-61-72-84-92-94 Website: RBIapproval.com Email: license.consultant@ozg.co.in  Apply for FREE membership to get  Multiple Value Added Services at One Place. Find more at -0zg.biz/membership BOOK APPOINTMENT ONLINE www.ozgcenter.org/appointment Opening of Branches 37. A housing finance company shall, before opening a branch or an office, inform National Housing Bank in writing of its intention to open a branch or an office.
Loans against HFC’s own shares prohibited 38. (1) No housing finance company shall lend against its own shares. (2)  Any outstanding loan granted by a housing finance company against its own shares on the date of commencement of these directions shall be recovered by the housing finance company as per the repayment schedule.
HFC failing to repay public deposit prohibited from making loans and investments 39. A housing finance company which has failed to repay any public deposit or part thereof in accordance with the terms and conditions of such deposit, as provided in section 36A(1) of the National Housing Bank Act, 1987, shall not grant any loan or other credit facility by whatever name called or make any investment or create any other asset as long as the default exists.
Constitution of Audit Committee 40.  A housing  finance company having assets of Rs 50 crore and above as per its last audited balance sheet shall constitute an Audit Committee consisting of not less than three non-executive Directors of the Board.
Explanation The Audit Committee constituted under this paragraph shall have the same powers, functions and duties as laid down in section 292A of the Companies Act, 1956 (1 of 1956).
Accounting year 41. Every housing finance company shall prepare its balance sheet and profit and loss account as on March 31 every year with effect from the accounting year ending on March 31, 2002: Provided that if the accounting year of any housing finance company ends on any date other than March 31, 2002, such housing finance company shall prepare its balance sheet and profit and loss account for any fraction of the year ending on March 31, 2002.
Copies of balance sheet and accounts together with the Directors’ report to be furnished to the National Housing Bank. 42. Every housing finance company shall deliver to the National Housing Bank an audited balance sheet as on the last date of each financial year and audited profit and loss account in respect of that year as passed by the housing finance company in General Meeting together with a copy of the report of the Board of Directors laid before the housing finance company in such meeting in terms of Section 217(1) of the Companies Act, 1956 (1 of 1956) within 15 days of such meeting as also a copy of the report and the notes on accounts furnished by its Auditors.
Auditor’s Certificate 43. Every housing finance company holding/accepting public deposits shall furnish to the National Housing Bank, along with the copy of the audited balance sheet as provided under paragraph 42, a copy of the auditor’s report to the Board of Directors and a certificate from its auditors to the effect that the full amount of liabilities to the depositors of the company including interest payable thereon are properly reflected in the balance sheet and that the company is in a position to meet the amount of such liabilities to the depositors.
Returns to be submitted to the National Housing Bank 44. (1) Without prejudice to the provisions of paragraph 42, every housing finance company shall submit to the National Housing Bank : (i)  an annual return furnishing the information specified in Schedule I to these Directions with reference to its position as on 31st March every year and a half yearly return furnishing the information specified in Schedule II to these Directions with reference to its position as on 30th September and 31st March every year (ii) further, housing finance companies accepting/holding public deposits, housing finance companies not accepting/holding public deposits but having an asset size of Rs 100 crores and more, shall submit to the National Housing Bank a quarterly return furnishing the information specified in Schedule III with reference to its position as at the end of every calendar quarter. (2)  (i) Every housing finance company shall, within one month from the commencement of business, deliver to the National Housing Bank, a written statement containing a list of – (a)  the names and official designations of its principal officers; (b) the complete postal address, telephone number/s and fax number/s of the registered/ corporate office; (c) the names and office address of the auditors of the company; (d) the names and the residential addresses of the directors of the housing finance company; and (e) the specimen signatures of the officers recognized to sign on behalf of  the housing finance company, returns specified in sub-paragraph (1). (ii) any change in the list referred to in clause (i) of this sub-paragraph shall be intimated to the National Housing Bank within one month from the occurrence of such change.
Balance-sheet, returns, etc. to be submitted to the office of National Housing Bank at New Delhi 45. Any balance sheets, returns or information required to be submitted or furnished to the National Housing Bank in pursuance of these Directions shall be submitted or furnished to the office of National Housing Bank at New Delhi.
Exemptions 46. The National Housing Bank may, if it considers it necessary for avoiding any hardship or for any other just and sufficient reason, grant extensions of time to comply with or exempt any housing finance company or class of housing finance companies, from all or any of the provisions of these Directions either generally or for any specified period subject to such conditions as the National Housing Bank may impose.
Interpretations 47. For the purpose of giving effect to the provisions of these directions, the National Housing Bank may,  if it considers necessary, issue necessary clarifications in respect of any matter covered herein and the interpretation of any provision of these directions given by the National Housing Bank shall be final and binding on all the parties concerned.
Saving of action taken or that may be taken for contravention of the Housing Finance Companies (NHB) Directions, 2001 48. It is hereby clarified that the supersession of the Housing Finance Companies (NHB) Directions, 2001, as amended from time to time, shall not in any way affect:   (i)  any right, obligation or liability acquired, accrued or incurred thereunder;  (ii)  any penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder; (iii)  any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any such penalty, forfeiture or punishment may be imposed as if those Directions had not been superseded.