In a regulatory filing, LIC recently said the board has cleared the proposal to invest in a new company, promoted by the NHB, for residential mortgage-backed securities.
About the National Housing Bank (NHB):
- NHB is an All-India Financial Institution (AIFl) established under the National Housing Bank Act, 1987.
- It is wholly owned by the Government of India.
- Objective: To operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions.
- The main functions of NHB include:
- Supervision and grievance redressal regarding Housing Finance Companies (HFCs).
- Ensures that HFCs meet regulatory capital requirements as required by BASEL norms, have a proper risk management framework in place, have good governance practices, etc.
- Financing in the form of extending refinancing options to primary lenders and lending directly with respect to projects undertaken by public housing agencies.
- Promotion and Development.
- NHB supervises HFCs, while regulation of HFCs is with the RBI.
- Head Office: New Delhi
- The general superintendence, direction, and management of the affairs and business of NHB vest in its Board of Directors.
- NHB RESIDEX: It is the country’s first official housing price index (HPI). It captures movements in the prices of residential real estate prices.