<h1>Committee Recommends Reverting Nidhi Regulation to Companies Act, 1956 for Centralized Oversight Similar to NBFCs.</h1> The Committee reviewing the Companies Act, 2013, noted that no suggestions were received for amending Section 406, which governs Nidhis. However, the Committee recommended reverting to the Companies Act, 1956 provisions, which required Central Government approval for declaring a company as a Nidhi. This approach was deemed more suitable as it provided a centralized regulatory framework. Given the similarity of Nidhis' business nature to Non-Banking Financial Companies (NBFCs), the Committee suggested that Nidhis be regulated centrally by the Ministry or Regional Directors to ensure effective oversight.