(ii) in paragraphs 4 and 5, the words „or collection centres or depositaries or depository institutions or under any designation“ shall be omitted. In order to effectively implement the provisions on Nidhi enterprises, the central government adopted the „Nidhi Rules“ in notification no. GSR 258(E) of 31.03.2014. The provisions of this regulation entered into force on 01.04.2014. These rules include the procedure for setting up a Nidhi company and other procedures relating to the conduct of Nidhi companies. The above-mentioned rules of procedure contain 24 rules and the following forms: 4. In Rule 4 of those Rules, in subparagraph (1), – (ii), he obtained the prior approval of the Regional Director by requesting Form NDH-2 and the fees under the Companies (Registrars and Fees) Rules, 2014 at least sixty days prior to such closure. 3. 1. In Rule 3a of this Regulation, the following provisions are inserted after the third reservation: The promoters and directors of the undertaking must meet the criteria of suitability and suitability laid down in the Regulation. Under the Societies Act 1956, a Nidhi or fraternal benefit society was a society that the central government declared to be a Nidhi or fraternal benefit society by publication in the Official Gazette. Under the Companies Act 2013, it was initially not necessary for a company to obtain a declaration from the central government to operate as a Nidhi company.
These companies only had to integrate as Nidhi and meet the requirements of sub-rule (1) of rule 5 of the Nidhi rules, namely a minimum number of 200 members, a net own fund (NoF) of Rs. 10 lakh, a NOF to deposit ratio of 1:20 and holding 10% of unencumbered deposits in commercial banks or post offices within one year of the Nidhi rules coming into effect. 2014. The amendment adds another Article 23b. Rule 23B provides that any entity referred to in Rule 2(a) must file Form NDH-4 and fees under the Companies (Registration Offices and Fees) Rules, 2014 to update its status. No fee will be charged for filing Form NDH-4 under this rule if it is filed within six months of the coming into force of the 2019 Nidhi (amendment) rules. If a corporation does not comply with the requirements of this rule, it is not entitled to issue Form No.SH-7 (Notification to the Registrar of Any Change in Share Capital) and Form PAS-3 (Return of Allotment). According to Rule 6 of the Nidhi Rules 2014, a Nidhi Company may not engage in the following activities: [In accordance with Rule 10(6) of the Nidhi Rules, 2014] A Nidhi company is a company recognised under Section 406 of the Companies Act, 2013 in conjunction with the Nidhi Rules 2014. Its main functions are borrowing and lending between its members and are in the Indian non-bank financial sector. It is a company founded for the express purpose of cultivating the habit of saving and saving among its members. They are known by various names such as Benefit Fund, Permanent Fund, Mutual Fund or Fraternal Benefit Society.
The rules and regulations relating to the registration of Nidhi companies are covered by Section 406 of the Companies Act 2013 and the Companies (Nidhi Companies) Rules 2014. The central government is amending the Nidhi rules of 2014 to protect the interests of the public. The rules stipulate that SOEs wishing to act as Nidhis must obtain a prior declaration from the central government before accepting deposits. Following the amendment to the Companies Act of 2013 w.e.f. 15.08.2019 and the resulting amendments to the Nidhi Rules, 2014 w.e.f. On 15.08.2019, companies incorporated as Nidhis had to apply to the central government in the form NDH-4 within 14 months of their incorporation, whether they were established after the entry into force of the Nidhi (amendment) rules on 15.08.2019 and within 9 months of the entry into force of the Nidhi rules ( amendment) on 15.08.2019 if they were established as Nidhis after 2014 but before 15.08.2019. G.S.R. 301(E).—In exercising the powers conferred by subsection (1) of section 406 in conjunction with paragraphs (1) and (2) of section 469 of the Companies Act 2013 (18 of 2013), the Central Government hereby promulgates the following rules to further amend the Nidhi Rules of 2014: „Provided also that any enterprise that has failed to comply with the requirements of this rule: or fails to comply with this requirement as of the effective date of the Nidhi (amendment) Rules, 2022, or if the application filed by the Society on Form NDH-4 is or has been refused by the central government, makes a contribution from its members or provides loans to its members in accordance with the provisions of this Regulation from the date of non-compliance, or the effective date of the above rules or the date of rejection of the application on Form NDH-4, whichever is later. Provided further that if a deposit collected by an enterprise after the date of non-compliance or the date of coming into force of the above rules or the date of rejection of the application on Form NDH-4, whichever is later, shall be deemed to have been collected in accordance with Chapter V of the Act and shall be subject to all the requirements of this Chapter or, if any, other provisions of the Act or provisions of the Act under the Act. Regulations promulgated by law. Under the Companies Act of 1956, approximately 390 companies were declared as Nidhi companies only.
In 2014-2019, more than ten thousand companies will be created. However, only about 2,300 companies filed a declaration on Form NDH-4. After reviewing the NDH-4 form, it was found that the companies had not complied with the applicable provisions of the Nidhi Law and Rules of 2014 (as amended). In order to safeguard the interests of the general public, it has become essential that before becoming a member, one must ensure that a company is declared Nidhi by the central government, and in this sense, few necessary/significant changes have been made to the rules that apply to companies to be established under the Nidhi (amendment) rule. 2022, as follows: Rule 5(3) provides that if a Nidhi does not meet the requirements, it must request an extension of time within thirty days of the end of the first fiscal year from the Regional Director on Form NDH-2 with the fees set out in the Corporations Rules (Registrars and Fees), 2014, and the Regional Director may review the application and issue orders within thirty days of receipt of the application. The amendment introduces a reservation to Article 5(3), which provides that the Regional Director may extend the time limit up to one year from the date of receipt of the request. (5) If the Central Government is satisfied that the society meets the requirements of sub-regulations (2) and (3), it shall announce this in the Official Gazette and declare it Nidhi or fraternal benefit society, as the case may be: Chapter XXVI of the Companies Act 2013 (abbreviated as „Act“) contains the provisions applicable to Nidhi societies. Section 406 (1) of the Act defines the term „Nidhi“ as a company established under the name Nidhi for the purpose of cultivating the habit of saving and saving among its members, receiving deposits from its members and lending them only for their mutual benefit, and complying with the rules prescribed by the central government for the regulation of this group of enterprises.
Provided also that nothing in this rule applies to companies incorporated as Nidhi as of the entry into force of the above rules. 1. Short title and beginning.– (1) These rules can be called Nidhi Rules (amendments), 2022. 2. In Form NDH-3 of those Rules, the following is inserted under point 8 after (vi):-`(vii) Net own funds: _____`; 2. In the Nidhi Rules 2014 (`those Rules`), in Rule 3 of subparagraph (1), the following clause is inserted after point (a), namely: The amendment inserted a new Rule 3A for the purposes of the Nidhi Declaration. New Rule 3A(1) stipulates that the central government must register the company in the Official Gazette upon receipt of the application (in Form NDH-4 with the fee) from a public limited company to declare it as Nidhi and after satisfaction that the company meets the requirements of these rules. A Nidhi incorporated under the Act on or after the effective date of the 2019 Nidhi (Amendment) Rules must file Form NDH-4 within sixty days of the expiry of Rule 5(1) that each Nidhi must satisfy itself that it has met the requirements of a Nidhi entity within one year of the date of coming into force of these Rules. The amendment amended Rule 5(1), which reads after the amendment, because each Nidhi must ensure that it has met the requirements of a Nidhi entity within one year from the date of its incorporation. Provided, in addition, that the company commences business only after the decision of the central government to approve its application has been obtained by the central government in accordance with the declaration under Rule 12 of the Companies (Incorporation) Regulations 2014.
(i) In paragraph 3, the words „by applying for Form NDH-2 and the fees set out in the Companies (Registration Offices and Fees) Rules 2014“ shall be inserted after the words „Regional Director“. The central government has developed the „Nidhi Rules, 2014“ with the ultimate goal of achieving the objectives of „Nidhi“ enterprises. These rules must be applied to: (iii) provide notice to the Registrar on Form NDH-2 and a tax in accordance with the Corporations (Registrars and Fees) Rules, 2014 within thirty days of such closure.