Case Brief
What Happened
RBI imposed a monetary penalty on Nido Home Finance Limited (formerly Edelweiss Housing Finance Limited), Mumbai, by order dated September 13, 2023. The company was found to have failed to obtain prior written RBI permission for a change in its shareholding, as progressive transfers/increases led to acquisition of shareholding beyond the permitted limit. RBI held that this amounted to non-compliance with the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 and imposed a penalty under Section 52A(1)(b) read with Section 49(3)(aa) of the National Housing Bank Act, 1987.