Nidhi Companies Rules: The central government has taken a big step keeping in mind the interests of the common people. The government has changed the rules of Nidhi companies. The Ministry of Corporate Affairs of the Central Government has given this information by issuing a statement on Wednesday. Let’s know the new rules.
Nidhi Companies Rules: There is important news for those dealing with Nidhi companies. Actually, in view of the interests of the common people, the government has amended the rules governing Nidhi companies. The Ministry of Corporate Affairs of the Central Government has given this information by issuing a statement on Wednesday. The ministry said listed companies desirous of acting as funds will now have to obtain pre-approval from the central government before accepting deposits.
Amendment in the rules of Nidhi companies
The ministry said in its statement, ‘In order to protect the interest of the general public, it is imperative that before becoming its member, a declaration as a Nidhi Company is obtained from the Central Government. Further, a firm constituted as a Nidhi Company with a share capital of Rs.10 Lakhs will have to apply through Form NDH-4 with a minimum membership of 200 to declare itself as a Nidhi. The Net Owned Fund (NOF) of such companies should be Rs 20 lakh within 120 days of formation.
Criteria must be met
According to the new rule, the promoters and directors of the company will have to meet the criteria of suitable person as per the prescribed rules. The ministry also said, “If the Central Government does not take any decision within 45 days of the receipt of applications filed by the companies in the form of NDH-4 for timely disposal, the sanction shall be deemed to have been approved.” .’
Apart from this, let us tell you that it has also been said in the release that this will be applicable to such companies which will be incorporated after the Fund (Amendment) Rules, 2022.
Know what are Nidhi companies?
It is worth noting that Nidhi companies are a type of non-banking financial institutions i.e. non-banking financial services companies that deal with their members on lending. In this, many times complaints keep coming up between transactions.
