MCA amends Nidhi Rules and hikes the requirement of minimum NoF and paid-up capital
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- Last Updated on 21 April, 2022
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Notification no. G.S.R. 301(E), Dated: 19.04.2022
The MCA has notified the Nidhi (Amendment) Rules, 2022. As per amended rules 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 on fulfilling these two conditions.
(a) It has not less than 200 members; and
(b) It has Net Owned Funds of Rs. 20 Lakhs or more.
Further, the amended rules provide that any company which has not complied with the requirements of the said Rule, or fails to comply with such requirement on or after the commencement of the Amendment Rules, or in case the application submitted by the company in Form NDH-4 has been rejected by the Govt., that company shall not raise any deposit from its members or provide any loans to them.
However, if any deposit raised by a company after the date of non-compliance, or the date of commencement of the above said rules, or the date of rejection of the application in Form NDH-4, whichever is later shall be deemed to have been raised in pursuance of Chapter V of the Act, meaning thereby the provision related to deposit shall apply and it shall be subject to all the requirements under that Chapter or under any other provisions of the Act or the rules made thereunder, as the case may be.
Also, the Net Owned Funds requirement has been raised to Rs. 20 lakhs. Earlier, the requirement was Rs 10 lakhs. The Govt. has also enhanced the minimum paid-up equity share capital requirement for a Nidhi from Rs. 5 lakh to Rs. 10 lakh, while specifying that every Nidhi existing as on the date of commencement of the Amendment Rules shall comply with this requirement within a period of 18 months from the date of such commencement.
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