RBI modifies HFC Directions; extends applicability of instructions w.r.t “Raising Money through Private Placement by NBFCs” under the SBR Directions, 2023 to HFCs

The Reserve Bank of India (“RBI”) has issued the following modifications to the Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021:

1. New Paragraph 56A has been inserted which states that instructions regarding “Raising Money through Private Placement by NBFCs” as contained in para 58 of the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 (as amended from time to time) will be applicable, mutatis-mutandis, to HFCs.
2. Paragraphs 57 to 68A under Chapter XI of Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 which deals with “Guidelines on Private Placement of Non-Convertible Debentures (NCDs)” has been deleted.

Source: Reserve Bank of India