Govt exempts NBFCs, listed firms from debenture reserve requirements

Government has removed Debenture Redemption Reserve(DRR) requirement for listed companies,Non banking financial companies (NBFCs) and Housing finance companies(HFCs). At present,these companies have to set up a DRR to the tune of 25% of the value of their outstanding debentures.However,banking companies and financial institutions are already exempted from creating DRRs. This move will make it cheaper… Continue reading Govt exempts NBFCs, listed firms from debenture reserve requirements

RBI takes over HFC regulation from NHB

The Reserve Bank of India(RBI) has approved a proposal to shift regulation of Housing finance companies(HFCs) from the National Housing Bank(NHB) to the RBI. Hence,HFCs will now be treated as one of the categories of non-banking financial companies(NBFCs) for regulatory purposes. Further,any housing finance institution which is a company desirous of making an application for… Continue reading RBI takes over HFC regulation from NHB

RBI begins monitoring HFCs

The Reserve Bank of India(RBI) has started monitoring the liquidity position,asset-liability gap and repayment schedules of housing finance companies(HFCs) on a daily basis. The move to monitor HFCs on a daily basis comes after some HFC had gone into liquidity crisis which had resulted in defaults.This crisis had started since the debt default by IL&FS… Continue reading RBI begins monitoring HFCs