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 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.
Q1) What is the Life Insurance Corporation of India (LIC)?
It is the largest and one of the oldest life insurance companies in India. It is a state-owned insurance group and investment company that was established in 1956. LIC is headquartered in Mumbai, Maharashtra, and it operates with a network of offices and agents across the country.