Deposit acceptance limits cap nidhi companies' deposits to net owned funds ratio, with phased restoration and renewal ban causing breach. Nidhi companies must limit acceptance of deposits to a prescribed multiple of their Net Owned Funds per the latest audited financial statements. Companies existing on or before 26 July 2001 that exceed the prescribed multiple must restore compliance by increasing Net Owned Funds or reducing deposits according to a phased timetable based on their current ratio. These companies shall not accept fresh deposits or renew existing deposits if such action would violate the prescribed ratio. The ratio requirement also governs incremental deposits.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Deposit acceptance limits cap nidhi companies' deposits to net owned funds ratio, with phased restoration and renewal ban causing breach.
Nidhi companies must limit acceptance of deposits to a prescribed multiple of their Net Owned Funds per the latest audited financial statements. Companies existing on or before 26 July 2001 that exceed the prescribed multiple must restore compliance by increasing Net Owned Funds or reducing deposits according to a phased timetable based on their current ratio. These companies shall not accept fresh deposits or renew existing deposits if such action would violate the prescribed ratio. The ratio requirement also governs incremental deposits.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
