{"id":226910,"date":"2020-03-12T17:30:03","date_gmt":"2020-03-12T12:00:03","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=226910"},"modified":"2020-03-13T10:12:31","modified_gmt":"2020-03-13T04:42:31","slug":"nidhi-companies-to-apply-to-the-central-govt-for-updation-of-their-status-declaration-as-nidhi-co","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/03\/12\/nidhi-companies-to-apply-to-the-central-govt-for-updation-of-their-status-declaration-as-nidhi-co\/","title":{"rendered":"Nidhi Companies to apply to the Central Govt. for updation of their status\/ declaration as Nidhi Co."},"content":{"rendered":"

In order to make regulatory regime for Nidhi Companies more effective and also to accomplish the objectives of transparency & investor friendliness in corporate environment of the country, the Central Government has recently amended the provisions related to NIDHI under the Companies Act and the Rules (effective from 15.08.2019).<\/strong><\/p>\n

The amended provisions of the Companies Act (Section 406) and Nidhi rules (as amended w.e.f. 15.08.2019) require that the Nidhi companies have to apply to the Central government for updation of their status\/ declaration as Nidhi Company in Form NDH-4.<\/p>\n

The time-frame for applying to Central Government in form NDH-4 is as under:- <\/strong><\/p>\n

    \n
  1. Companies incorporated as Nidhi before<\/strong> Nidhi Amendment Rules, 2019 i.e. 15.08.2019 have to apply within a period of one year from the date of its incorporation or within 9 months of the Nidhi Amendment Rules i.e. 15.08.2019 whichever is later. <\/strong><\/li>\n
  2. Companies incorporated as Nidhi on or after Nidhi Amendment Rules, 2019 i.e. 15.08.2019 have to apply within 60 days of expiry of one year from the date of incorporation or extended\u00a0 period (as granted by concerned Regional Director).<\/li>\n<\/ol>\n

    In case a company does not comply with the above requirements, it shall not be allowed to file Form No. SH\u20137 (Notice to Registrar for any alteration of share capital) and Form PAS\u20133 (Return of Allotment).<\/p>\n

    Such companies are required to ensure strict adherence to provision of Companies Act, 1956\/2013 and Nidhi Rules, 2014 as amended. In case of contravention\u00a0 of the provisions of these Rules, the company and every officer of the company who is in default shall initially be punishable with fine which may extend to five thousand rupees and further fine in case of continuous violations.<\/p>\n

    Further, the Investors are advised to verify the status of Nidhi company from the notification\u00a0issued by Central Government in official gazette before making any investment or deposit.<\/p>\n

    Under Nidhi Rules, 2014, Nidhi is a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and saving amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit.<\/p>\n

    \n

    Ministry of Corporate Affairs<\/strong><\/p>\n

    [Source: PIB]<\/span><\/p>\n

    [Press Release dt. 12-03-2020]<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    In order to make regulatory regime for Nidhi Companies more effective and also to accomplish the objectives of transparency & investor friendliness <\/p>\n","protected":false},"author":8808,"featured_media":209748,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[20201,39966,39965,39967],"class_list":["post-226910","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-central-government","tag-form-4","tag-nidhi-companies","tag-section-406-of-companies-act"],"yoast_head":"\nNidhi Companies to apply to the Central Govt. for updation of their status\/ declaration as Nidhi Co. | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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sub-sections (1) and (2) of Section 469 of the Companies Act, 2013, the Central Government hereby makes the following rules, to amend the Nidhi Rules, 2014, namely:- 1. (1) These Rules may be called the\u2026","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":265652,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/04\/20\/minimum-paid-up-equity-share-capital-increased-from-five-lakh-to-ten-lakh-rupees-vide-nidhi-amendment-rules-2022\/","url_meta":{"origin":226910,"position":1},"title":"Minimum paid up equity share capital increased from five lakh to ten lakh rupees vide Nidhi (Amendment) Rules, 2022","author":"Bhumika Indulia","date":"April 20, 2022","format":false,"excerpt":"On April 19, 2022, the Ministry of Corporate Affairs has notified Nidhi (Amendment) Rules, 2022 to amend the Nidhi Rules, 2014. 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Vinod Chandran, J allowed the writ petition and directed the State to refund the amount already collected in the form of cess only\u2026","rel":"","context":"In "High Courts"","block_context":{"text":"High Courts","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/highcourts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":87131,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/11\/22\/uttar-pradeshs-vidhayak-nidhi-scheme-does-not-violate-article-243szd-of-the-constitution\/","url_meta":{"origin":226910,"position":3},"title":"Uttar Pradesh\u2019s Vidhayak Nidhi Scheme does not violate Article 243SZD of the Constitution","author":"Prachi Bhardwaj","date":"November 22, 2016","format":false,"excerpt":"Supreme Court: In the petition dealing with the legality of the Vidhayak Nidhi Scheme in the State of Uttar Pradesh which provides for annual budgetary grants to Members of the Legislative Assembly and Legislative Council for facilitating development work in their constituencies, the Court said that the Scheme does not\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":266261,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/05\/01\/legislations-monthly-roundup-april-2022\/","url_meta":{"origin":226910,"position":4},"title":"Legislations | Monthly RoundUp [April, 2022]","author":"Bhumika Indulia","date":"May 1, 2022","format":false,"excerpt":"MINISTRY OF AYUSH Drugs (4th Amendment) Rules, 2022 On April 04, 2022, the Central Government has notified the Drugs (4th Amendment) Rules, 2022 to further amend the Drugs Rules, 1945. This has come into force on April 4, 2022. 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