The Nidhi (Amendment) Rules, 2022 have been released by the Ministry of Corporate Affairs as a notification to amend the Nidhi Rules, 2014. A new rule 3-B has been added as a result of the amendment:
On and after the commencement of the Nidhi (Amendment) Rules, 2022, a public company desiring to be declared a Nidhi must apply in Form NDH-4 within 120 days of its formation for declaration as a Nidhi if it meets the following criteria:
- It has a minimum of 200 members; and
- It has Net Owned Funds of at least twenty lakh rupees.
Along with Form NDH-4, the company must also attach a declaration from all of the company’s promoters and directors stating that they meet the fit and proper person qualifications. The Central Government will analyse the application in Form NDH-4 and notify the company of its decision within 45 days.
Rule 4 requires that a Nidhi company be constituted as a public company with a minimum paid-up equity share capital of ten lakh rupees.
Provided, however, that any Nidhi in existence on the date of the commencement of the Nidhi Amendment Rules,2022, must comply with this provision within eighteen months of that date.
No Nidhi shall raise loans from banks, financial institutions, or any other source for the purpose of advancing loans to Nidhi members, according to rule 6(k)(1).