Restrictions on Nidhi companies: specified prohibitions and mandatory membership and profitability conditions for government-declared Nidhis. The Central Government prescribes conditions for companies declared as Nidhis: they are prohibited from engaging in chit fund, insurance, hire purchase or business in shares or debentures; from opening new branches or current accounts with members; from admitting corporate members; and from amending their memorandum or articles without government approval. Each declared Nidhi must have at least one thousand members, have completed one financial year, and have made a reasonable profit after writing off preliminary expenses and brought forward losses.