Introduction The success and survival of a Nidhi Company depends on deposits mobilised from its members. However, since Nidhis are mutual benefit societies, the law places strict limits on how much they can accept and under what conditions. Rule 11 of the Nidhi Rules, 2014, read with subsequent amendments, sets out the framework for acceptance […]
Introduction A Nidhi Company, by its very nature, is formed to encourage thrift and savings among its members and to provide loans to them. Since it operates on a mutual benefit principle, the law requires that deposit holders also have some stake in the company. This is achieved through the rules on share capital and
Share Capital and Allotment in Nidhi Companies – Rule 7 Explained Read More »
Nidhi CompanyIntroduction The Ministry of Corporate Affairs notified the Nidhi (Amendment) Rules, 2022 with an objective to regulate Nidhi companies more strictly and to ensure that only genuine companies are allowed to function as Nidhis. Earlier, many promoters were incorporating public companies and using the name “Nidhi” without adequate scrutiny. This led to misuse and depositors
Nidhi Amendment Rules 2022 – Rule 3B Explained for Nidhi Companies Read More »
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