Nidhi regulations restrict non core activities and impose membership, deposit, lending and governance controls for Nidhi companies. The notification establishes comprehensive regulatory controls for companies declared as Nidhi or Mutual Benefit Society, restricting non core business activities, prescribing membership minima, annual auditor certification, minimum Net Owned Funds and controlled branch expansion. It caps aggregate deposits relative to Net Owned Funds, prescribes permitted deposit products and application disclosures, mandates minimum shareholding by depositors, requires specified bank term deposit investments, limits member lending by security type and ceilings, regulates director tenure and eligibility, constrains dividend declaration and empowers appointment of a Special Officer for breaches, with transitional timelines and limited Central Government exemptions.
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Provisions expressly mentioned in the judgment/order text.
Nidhi regulations restrict non core activities and impose membership, deposit, lending and governance controls for Nidhi companies.
The notification establishes comprehensive regulatory controls for companies declared as Nidhi or Mutual Benefit Society, restricting non core business activities, prescribing membership minima, annual auditor certification, minimum Net Owned Funds and controlled branch expansion. It caps aggregate deposits relative to Net Owned Funds, prescribes permitted deposit products and application disclosures, mandates minimum shareholding by depositors, requires specified bank term deposit investments, limits member lending by security type and ceilings, regulates director tenure and eligibility, constrains dividend declaration and empowers appointment of a Special Officer for breaches, with transitional timelines and limited Central Government exemptions.
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