Rule 14 of Nidhi Rules 2014
(i) in paragraph 3, the words `by applying for Form NDH-2 and the fees set out in the Companies (Registration Offices and Fees) Rules 2014` shall be inserted after the words `Regional Director`; ii. Project proponents and directors of the Corporation must meet the criteria of relevance and relevance set out in the Rules. (ii) in paragraphs 4 and 5, the words `or assembly centres or depositaries or depositaries or under any denomination` shall be deleted; [According to Rule 10, subsection (6) of the Nidhi Rules, 2014] 4. In Article 4 of this Regulation, in paragraphs 1 to 2 of Form NDH-3 of this Regulation, the following is inserted in order 8 after (vi):-`(vii) Net own funds: _____`. Provided also that nothing in this rule applies to companies that were incorporated as Nidhi at the time of entry into force of the above rules. « Provided also that no entity that has failed to comply with the requirements of this Rule or fails to comply with this requirement as of the effective date of the Nidhi (Amendments) Rules, 2022, or if the application filed by the Company on Form NDH-4 is or has been rejected by the Central Government, shall not contribute from its members or grant loans to its members in accordance with the provisions of this Regulation. the date of non-compliance or from the date of coming into force of the above rules or the date of rejection of the application on Form NDH-4, whichever is later. Following the amendment of the Companies Act 2013, w.e.f. 15.08.2019 and the amendments to the Nidhi Rules of 2014 w.e.f. Article 23(2): With respect to any Nidhi who has violated these Rules or who has not worked in accordance with the Memorandum and the Statutes, the Central Government may appoint a Special Representative to take charge of the administration of the Nidhi, and this Special Representative shall act in accordance with the instructions of the Central Government: class=»MsoNormal» style=»text-align: justify; >The Ministry of Corporate Affairs (MCA) will announce the Nidhi Rules (Second Amendment) on February 14, 2020-2020 to further amend the 2014 Nidhi Rules. The 2014 Nidhi Rules come into effect on April 1, 2014. The 2014 Nidhi Rules were last amended by the 2022 Nidhi Amendment Rules. The sixth reservation provides that, upon the entry into force of these rules, Rule 3A does not apply to companies incorporated under the name Nidhi.[In Rules 23A and 23B, the words « nine months » were replaced by Nidhi (Second Amendment), 2020 w.e.f. 15-Feb-2020] In accordance with Rule 6 of the Nidhi Rules 2014, a Nidhi entity may not engage in: Rule 3(1): In these Regulations, unless the context otherwise requires, unless this requirement applies to an organization referred to in Rule 2(a) and (b). Upon receipt of a company`s application (on Form NDH-4 with fees) to declare itself as Nidhi, and if satisfied that the company meets the requirements of these rules, the central government must declare the company in the Official Gazette as Nidhi: In addition, the amended rules provide that any company that has not complied with the requirements of the said rule: or does not meet this requirement at the time the amendment rules come into force, or if the application filed by the Corporation on Form NDH-4 has been refused by the Government, the Corporation shall not collect deposits from its members or grant loans to them. However, if a submission collected by a corporation after the date of non-compliance or the effective date of the above rules or the date of rejection of the application on Form NDH-4 is deemed to have been collected under Chapter V of the Act, this means that the filing provision applies and meets all the requirements of this chapter or any other provision of the Act or its regulations made under the Act. The Nidhi Rules 2014 were published in accordance with G.S.R. 258(E) dated 31.03.2014 and recently amended by Nidhi Rules (amendments), 2022 w.e.f. 19-April-2022. February 17, 2020 | by TeamLease RegTech Legal Research Team With new rules, the government is trying to simplify things for Nidhi to be declared a Nidhi company by approving its NDH4 within strict deadlines set out in those rules. Rule 23(1): In order to enforce these rules, the Registrar of Corporations may request from Nidhi such information or reports as he deems necessary and may, from time to time, engage the services of auditors, acting secretaries, cost accountants or any of their offices to assist the Registrar in the performance of his or her duties.
A Nidhi company is a company recognised under Section 406 of the Companies Act 2013 in conjunction with the Nidhi Rules 2014. Its main functions are borrowing and lending between its members and are in the Indian non-bank financial sector. It is a company founded for the express purpose of cultivating the habit of saving and saving among its members. They are known by various names such as Benefit Fund, Permanent Fund, Mutual Fund or Fraternal Benefit Society. On 15.08.2019, companies incorporated as Nidhis had to apply to the central government for a declaration on Form NDH 4 within 14 months of incorporation if they were registered as Nidhis after the entry into force of the Nidhi (amendment) rules on 15.08.2019 and within 9 months of the entry into force of the Nidhi (amendment) rules w.e.f on 15.08.2019 if they were registered as Nidhis after 2014 but before 15.08.2019. Provided further that if a security deposit collected by an enterprise after the date of non-compliance or the date of coming into force of the above provisions or the date of rejection of the application on Form NDH-4, whichever is later, is deemed to have been levied under Chapter V of the Act and is subject to all the requirements of this chapter, or, if applicable: other provisions of the Act or provisions of the Act made under the Act. Regulations enacted by law. (iii) notify the Registrar of Form NDH-2 within thirty days of such closure, together with a fee in accordance with the 2014 Corporations Rules (Registrars and Fees). 5.
Where the central government finds that the enterprise complies with paragraphs 2 and 3, it shall inform the Official Journal accordingly and declare that it is a Nidhi or a mutual company in accordance with point 1. In Article 3a of this Regulation, the following provisions are inserted after the third reservation: Namely:- 1. Short title and beginning.– (1) This Regulation may be referred to as the Nidhi (Amendments) Regulation, 2022. Under the Societies Act 1956, a Nidhi or fraternal charity was a society declared by the central government Nidhi or fraternal charity by publication in the Official Gazette. Under the Companies Act of 1956, approximately 390 companies were declared as Nidhi companies only. In 2014-2019, more than ten thousand companies will be created. However, only about 2,300 companies filed a return on Form NDH-4. After reviewing Form NDH 4, it was found that the companies had not complied with the applicable provisions of the Nidhi Law and the Nidhi Rules of 2014 (as amended). In order to protect the interests of the general public, it has become imperative to ensure that a company is declared Nidhi by the central government before joining, and in this sense, few necessary/significant changes have been made to the rules that apply to companies to be established under the Nidhi Rule (amendment rule). 2022, as follows: – The central government amends the Nidhi rules of 2014 to protect the interests of the public.
The rules stipulate that SOEs wishing to operate under the name Nidhis must obtain a prior explanation from the central government before accepting bids (ii) they have obtained prior approval from the Regional Director by filing Form NDH-2 with the royalty under the Companies Rules (Registrars and Fees) at least sixty days prior to such closure; 2014. G.S.R. Under the Companies Act of 1956, approximately 390 companies were declared as Nidhi companies only. In 2014-2019, more than ten thousand companies will be created. However, only about 2,300 companies filed a declaration on Form NDH-4. After reviewing the NDH-4 form, it was found that the companies had not complied with the applicable provisions of the Nidhi Law and Rules of 2014 (as amended).