Central Govt. notifies — Nidhi (Amendment) Rules, 2019

G.S.R. 467(E)—In exercise of the powers conferred by sub-section (1) of Section 406 read with 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 Nidhi (Amendment) Rules, 2019.

    (2) They shall come into force with effect from 15 August, 2019.

2. In the Nidhi Rules, 2014 (hereinafter referred to as “said rules”), in Rule 2, after clause (c), the following clause shall be inserted, namely:-

(d) every company declared as Nidhi or Mutual Benefit Society under sub-section (1) of Section 406 of the Act”.

3. In the said rules, in Rule 3, after clause (d), the following clause shall be inserted, namely:-

‘(da) “Nidhi” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with the rules made by the Central Government for regulation of such class of companies.’

4. In the said rules, after Rule 3, the following rule shall be inserted, namely:-

“3A. Declaration of Nidhis ? The Central Government, on receipt of application (in Form NDH-4 along with fee thereon) of a public company for declaring it as Nidhi and on being satisfied that the company meets the requirements under these rules, shall notify the company as a Nidhi in the Official Gazette:

Provided that a Nidhi incorporated under the Act on or after the commencement of the Nidhi (Amendment) Rules, 2019 shall file Form NDH-4 within sixty days from the date of expiry of:-

(a) one year from the date of its incorporation; or

(b) the period up to which extension of time has been granted by the Regional Director under sub-rule (3) of Rule 5:

Provided further that nothing in the first proviso shall prevent a Nidhi from filing Form NDH-4 before the period referred therein:

Provided also that 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).”.

5. In the said rules, in Rule 4, –

(i) in sub-rule (1), the words, “to be incorporated under the Act” shall be omitted;

(ii) in sub-rule (5), the words “Company incorporated as a” shall be omitted.

6. In the said rules, in Rule 5, –

(i) in sub-rule (1), for the words “from the commencement of these rules”, the words “from the date of its incorporation” shall be substituted;

(ii) in sub-rule (3), before the Explanation, the following proviso shall be inserted, namely:-

“Provided that the Regional Director may extend the period upto one year from the date of receipt of application.”.

(iii) in sub-rule (4), after the words, brackets and figure “contained in sub-rule (1)”, the words, brackets and figures “and gets itself declared under sub-section (1) of Section 406” shall be inserted.

7. In the said rules, in rule 7, in sub-rule (1), after the words “shall issue” the words “fully paid up” shall be inserted.

8. In the said rules, in Rule 12,?

(i) in sub-rule (1) after clause (b), the following clause shall be inserted namely:-

“(ba) The date of declaration or notification as Nidhi”;

(ii) in sub-rule (2), in clause (a), for the words “Registrar of Companies”, the words “Bench of the National Company Law Tribunal” shall be substituted.

9. In the said rules, in Rule 23, in sub-rule (2),-

(i) for the words “concerned Regional Director”, the words, “Central Government” shall be substituted;

(ii) for the words “such Regional Director”, the words, “Central Government” shall be substituted;

(iii) in the proviso, for the words “Regional Director”, the words, “Central Government” shall be substituted.

*Please follow the link for detailed notification: NOTIFICATION


[Notification dt. 01-07-2019]

Ministry of Corporate Affairs

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