The Ministry of Corporate Affairs vide its notification dated 19th April 2022, has published the Nidhi (Amendment) Rules, 2022 to further amend the Nidhi Rules, 2014.
As per the amendment a new rule 3-B has been inserted as follows:
On and after commencement of Nidhi (Amendment) Rules, 2022, 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 fulfils the following conditions, namely:-
- it has not less than 200 members; and
- it has Net Owned Funds of twenty lakh rupees or more.
The company shall also attach, alongwith Form NDH-4, the declaration with regard to fulfilment of fit and proper person criteria, by all the promoters and directors of the company. The Central Government, shall examine the application filed in Form NDH-4 and convey its decision within a period of 45 days to the company.
A Nidhi company to be incorporated under rule 4, shall be a public company and shall have a minimum paid up equity share capital of ten lakh rupees.
Provided that every Nidhi existing as on the date of commencement of the Nidhi Amendment Rules,2022, shall comply with this requirement within a period of eighteen months from the date of such commencement.
Further under rule 6 (d), 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.
Under rule 6(k)(1) No Nidhi shall raise loans from banks or financial institutions or any other source for the purpose of advancing loans to members of Nidhi.
As per the amended rule 9 Every Nidhi shall maintain Net Owned Funds (excluding the proceeds of any preference share capital) of not less than twenty lakh rupees or such higher amount as the Central Government may specify from time to time.
Provided that every Nidhi existing as on the date of commencement of the Nidhi (Amendment) Rules,2022 shall comply with this requirement within a period of eighteen months from the date of such commencement.
