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Corporate Laws Central Ministry of Corporate Affairs Companies Act, 2013

Nidhi (Amendment) Rules, 2022

19-Apr-2022 | G.S.R. 301(E)

MCA has notified Nidhi (Amendment) Rules, 2022.

The key amendments are as follows-

1. A company, which has not complied with Rule 3A pertaining to the Declaration of Nidhis, shall not raise any deposit from its members or provide any loan to its members. (Insertion: Fourth and Fifth Proviso to Rule 3A)
2. Public company desirous to be declared as a Nidhi shall apply, in Form NDH-4, within a period of 120 days of its incorporation for declaration as Nidhi, if it fulfills the conditions as mentioned in the circular. (Insertion: Rule 3B)
3. A Nidhi shall be a public company and shall have a minimum paid-up equity share capital of Rs. 10 lakh. (Substitution: Rule 4(1))
4. No Nidhi shall acquire or purchase securities of any other company or control the composition of the Board of Directors of any other company in any manner whatsoever or enter into any arrangement for the change of its management. (Substitution: Rule 6(d))
5. Every Nidhi shall maintain Net Owned Funds of not less than Rs.20 lakh. (Substitution: Rule 9)

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