MCA notification dated 14th February, 2020
- Rule 23A of Nidhi Rules, 2014, Every company referred to in clause (b) of rule 2 and every Nidhi incorporated under the Act, before the commencement of Nidhi (Amendment)Rules, 2019, shall also get itself declared as such in accordance with rule 3A within a period of one year from the date of its incorporation or within a period of six months Nine months from the date of commencement of Nidhi (Amendment) Rules, 2019, whichever is later provided that in case a company does not comply with the requirements of this rule, it shall not be allowed to file Form No. SH-7 (Notice to Registrar of any alteration of share capital) and Form PAS-3 (Return of Allotment).
- Rule 3A, of NIdhi Rules, 2014, Dectaration of Nidhis :- In the Form NDH-4 within Sixty days from the date of expiry of :-
- One year from the date of its incorporation; or
- the period up to which extension of time has been granted by the Regional Director.
- Clause (b) of Rule 2 of Nidhi Rules, 2014, every company functioning on the lines of a Nidhi company or Mutual Benefit Society but has either not applied for or has applied for and is awaiting notification to be a Nidhi or Mutual Benefit Society under sub-Section (1) of Section 620A of the Companies Act, 1956.
- What is a Nidhi company? : A nidhi company is a type of company in the Indian non-banking finance sector, recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending money between their members. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. (source wikipedia)