The Reserve Bank of India issued a circular revising requirements for Housing Finance Companies (HFCs) undertaking private placements of non-convertible debentures (NCDs) with a maturity period of more than one year, replacing the existing HFC-specific framework with the NBFC framework. The instructions on “Raising Money through Private Placement by NBFCs” in paragraph 58 of the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 now apply, mutatis mutandis, to HFCs. As a result, the private placement guidelines in Chapter XI of the Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 have been repealed, with a new paragraph 56A inserted and paragraphs 57 to 68A deleted; the revised requirements apply to all fresh private placements from the date of the circular.
Reserve Bank of India 2025-01-29
Reserve Bank of India extends NBFC private placement rules to Housing Finance Companies issuing NCDs with maturity over one year
The Reserve Bank of India revised the framework for Housing Finance Companies (HFCs) issuing non-convertible debentures (NCDs) through private placements, aligning it with the Non-Banking Financial Company (NBFC) framework. The updated guidelines replace the previous HFC-specific framework and apply to all new private placements from the circular's issuance date.