Registration of Housing Finance Companies in India

To obtain a certificate of registration from National Housing Bank, a Housing Finance Company needs to make an application on HB in a specified form with the requisite fees. The form is available on the official website of National Housing Bank.

Conditions to be fulfilled for grant or refusal of a certificate of registration by National Housing Bank-

The conditions to be fulfilled for obtaining a certificate for registration is as follows-

• Housing Finance Companies shall be in a position to pay its depositors in full as and when their claims accrue
• The conduct of the HFC should not be in any detrimental manner which is against the interest of its depositor
• The management of the HFC should not be prejudicial to the public interest or to the depositor the company
• The Housing Finance Company should have adequate capital and earning prospects
• the public interest should be served by the grant of such certificate of registration 
• Such other conditions as specified by the NHB from time to time on granting the certificate of registration. 

Rejection of Certificate of Registration

In case of rejection of certificate of Registration of Housing Finance Companies then the applicant or HUF can appeal to the Central Government within 30 days from the date on which such order of rejection is communicated to do it. 

Cancellation of Registration

The certificate for registration of Housing Finance Company once granted can be canceled in the following circumstances –

• When it ceased to carry on the business of housing finance further
• Where HFC has failed to comply with any prescribed condition subject to which the certificate of registration has been issued
• Where at any time it fails to comply with a direction issued by NHB
• Where it fails to maintain accounts in accordance with the requirement of law
• Where it fails to submit or offer for inspection its books of accounts and other relevant documents

However, HFC can appeal to the central government within a period of 30 days on which such cancellation is communicated to it.

Source by: https://entersliceblog.wordpress.com/2018/09/04/registration-of-housing-finance-companies-in-india/

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