Nidhi Company in India General restrictions Rule 6 provides general restrictions. According to this Rule no Nidhi shall- Carry on the business of Chit Fund, Hire Purchase Finance, Leasing Finance, Insurance or Acquisition of Securities issued by anybody corporate; Issue Preference Shares, Debentures or Any Other Debt Instrument by any name or in any form … Read More →
Nidhi Company in India What are the benefits of registering Nidhi Company in India? Advantages: There are several advantages of starting a Nidhi Company in India. We will have a look into some of these: · Limited RBI regulatory compliance Nidhi Companies need to incorporate themselves as Public Limited Companies with the MCA. And … Read More →
Nidhi Company in India IPORTANT POINT: Dividend: A Nidhi shall not declare dividend exceeding 25%or Such higher amount as may be specifically approved by the Regional Director for reasons to be recorded in writing and further subject to the following conditions- An equal amount is transferred to General Reserve; There has been no default in … Read More →
After the conflict between the government and the Reserve Bank of India on the issue of providing liquidity to the non-banking financial companies or NBFCs, the RBI on Friday allowed banks to provide a lifeline to some of the NBFCs through the partial credit enhancement (PCE) route. In a notification issued on Friday, the RBI … Read More →
Provisions of Loan in Nidhi Company: (1) A Nidhi shall provide loans only to its members. (2) The loans given by a Nidhi company to a member shall be subject to the following limits, namely:- (a) two lakh rupees, where the total amount of deposits of such Nidhi from its members is less than two … Read More →
Deposits in Nidhi Company (1) The fixed deposits shall be accepted for a minimum period of six months and a maximum period of sixty months. (2) Recurring deposits shall be accepted for a minimum period of twelvemonths and a maximum period of sixty months. (3) In case of recurring deposits relating to mortgage loans, the … Read More →
Share capital and allotment: (1) Every Nidhi shall issue equity shares of the nominal value of not less than ten rupees each: Provided that this requirement shall not apply to a company referred toin sub-rules (a) and (b) of rule 2. (2) No service charge shall be levied for issue of shares. (3) Every Nidhi … Read More →
General restrictions or prohibitions – No Nidhi Shall – (a) carry on the business of chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities issued by any body corporate; (b) issue preference shares, debentures or any other debt instrument by any name or in any form whatsoever; (c) open any current account … Read More →
Requirements for minimum number of members, net owned fund etc For Nidhi Company (1) Every Nidhi shall, within a period of one year from the commencement of these rules, ensure that it has- (a) not less than two hundred members; (b) Net Owned Funds of ten lakh rupees or more; (c) unencumbered term deposits of … Read More →
Nidhi Company Rules, 2014 – Incorporation and incidental matters 1) A Nidhi to be incorporated under the Act shall be a public company and shall have a minimum paid up equity share capital of five lakh rupees. (2) On and after the commencement of the Act, no Nidhi shall issue preference shares. (3) If preference … Read More →