Section 154 - Amendment of section 29A. - Finance (No. 2) Act, 2019

Amendment of section 29A. 154. In section 29A of the principal Act,- (a) for sub-sections (1) and (2), the following sub-sections shall be substituted, namely:- (1) Notwithstanding anything contained in this Chapter or in any other law for the time being in force, no housing finance institution which is a company shall commence housing finance as its principal business or carry on the business of housing finance as its principal business without- (a) obtaining a certificate of registration issued under this Chapter; and (b) having the net owned fund of ten crore rupees or such other higher amount, as the Reserve Bank may, by notification, specify. (2) Every housing finance institution which is a company shall make an application for registration to the Reserve Bank in such form as may be specified by the Reserve Bank: Provided that an application made by a housing finance institution which is a company to the National Housing Bank and pending for consideration with the National Housing Bank as on the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2) Act, 2019, shall stand transferred to the Reserve Bank and thereupon the application shall be deemed to have been made under the provisions of this sub-section and shall be dealt with accordingly: Provided further that the provisions of this sub-section shall not apply to the housing finance institution which is a company and having a valid registration certificate granted under sub-section (5) on the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2) Act, 2019, and such housing finance institution shall be deemed to have been granted a certificate of registration under the provision of this Act. ; (b) sub-section (3) shall be omitted; (c) in sub-section (4),- (i) for the words National Housing Bank at both the places where they occur, the words Reserve Bank shall be substituted; (ii) after clause (g), the following proviso shall be inserted, namely: Provided that the Reserve Bank may, wherever it considers necessary so to do, require the National Housing Bank to inspect the books of such housing finance institution and submit a report to the Reserve Bank for the purpose of considering the application. ; (d) in sub-section (5), for the words National Housing Bank , the words Reserve Bank shall be substituted; (e) in sub-section (6),- (i) in the opening portion, for the words National Housing Bank , the words Reserve Bank shall be substituted; (ii) in clause (iv), for the words National Housing Bank wherever they occur, the words Reserve Bank or the National Housing Bank shall be substituted; (iii) in the first proviso,- (A) for the words housing finance institution at both the places where they occur, the words housing finance institution which is a company shall be substituted; (B) for the words National Housing Bank at both the places where they occur, the words Reserve Bank shall be substituted; (f) in sub-section (7), (i) for the words National Housing Bank , the words Reserve Bank shall be substituted; (ii) in the Explanation, (A) in clause (I), in sub-clause (b), in item (1), for sub-item (iii), the following sub-item shall be substituted, namely:- (iii) all other housing finance companies; and ; (B) for clause (II), the following clause shall be substituted, namely- (II) the expressions subsidiaries and companies in the same group shall have the meanings respectively assigned to them in the Companies Act, 2013: Provided that the National Housing Bank shall, in consultation with the Reserve Bank, specify the companies to be deemed to be in the same group. .