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 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 →
COMPANY LAW: FAQs – Nidhi Company and its Operations What is Nidhi Company? A Nidhi Company is a Company which carries on the business of accepting deposits and lending the same on demand. Nidhi Company is similar to NBFC but the only basic difference between the two is that Nidhi Companies accept deposits only from its members. … Read More →
COMPANY LAW Restrictions on loans given by Nidhi Companies With the increase in demand of credit in the country, the Ministry of Corporate Affairs came up with the concept of Nidhi Company wherein the word Nidhi means ‘treasure’ with the object of cultivating the habit of thrift and saving amongst its members, receiving deposits from, … Read More →
COMPANY LAW Annual Company Law Compliance Calendar for Nidhi Companies Compliance requirement of Nidhi Companies has gone through various changes since the day Companies Act, 2013 has come into force. In recent past Compliance requirement of Companies has been increased with introduction of new forms i.e. MSME-1, BEN-2 etc. However, some exemptions are granted to … 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 →
Opening and Closing of Branches of Nidhi (Mutual Benefit Society) : A Nidhi may open branches if: (1) Only if it has earned net profits after tax continuously during the preceding three financial years. (2) Subject to the provisions contained in sub-rule (1), a Nidhi may open upto three branches within the district. (3) If … 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 →