Restrictions on Nidhi companies limit non core business activities and require annual auditor certification of compliance. Central Government directions impose operational restrictions on companies declared as Nidhi or Mutual Benefit Societies, prohibiting them from undertaking non core businesses, opening branches outside the district, admitting corporate members, issuing new shares or acquiring control of other companies, entering financial dealings with non members, taking further deposits from or lending to body corporates, conducting non borrowing/lending businesses, forming new partnership arrangements in borrowing or lending, and granting unsecured advances without prescribed security. Each Nidhi must maintain a minimum membership level and obtain an annual auditor's certificate of compliance and proper accounting.