TaxTMI 
TaxTMI 
Pursuant to Sabanayagam Comm. Report on Nidhis
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.... insurance or acquisition of shares or debentures issued by any body corporate except the shares of another Nidhi, if specifically permitted by Central Government; (ii) open any new current account with its members; (iii) admit as member, any body corporate or trust; (iv) issue any equity share of nominal value less than Rs. 10/- : Provided that in the case of existing Nidhis having face value of shares of less than Rs. 10/- such companies shall increase the face value of the shares to Rs. 10/- within a period of one year from the date of this Notification. Provided further that no service charges shall be levied for issue of shares; Provided also that the Central Government may, if satisfied, grant exemption on merits in individual cases; (v) make any preferential allotment of shares to any persons or group of persons but shall make only rights issue of shares and the unsubscribed portion can be apportioned by the Board of Directors in terms of....
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....h the directions specified in this notification and has maintained its books of account according to recognised principles of accounting; (iii) ensure that its Net Owned Fund (excluding the proceeds of preference share capital) is not less than ten lakh rupees or such amount as the Central Government may specify from time to time; Provided that the existing nidhis or Mutual Benefit Societies shall reach before 31st day of December 2002, the said minimum amount of ten lakh rupees; Provided further that the Central Government may for reasons to be recorded in writing extend the period of 31st day of December, 2002 in respect of any class or category of Nidhi or Mutual Benefit Society. C (i) a company declared as a Nidhi or Mutual Benefit Society under section 620A of the Companies Act, 1956 may after the publication of this notification, open branches only if it has earned profit for last three continuous years; (ii) a Nidhi or Mutual Benefit Society may open up to three branches, subject to the above condition, within the Revenue District; a....
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.... (i) name of the Nidhi or Mutual Benefit Society. (ii) date of incorporation of the Nidhi or Mutual Benefit Society. (iii) the business carried out by the Nidhi with details of branches, if any. (iv) brief particulars of the management of the Nidhi (name, addresses and occupation of the directors). (v) profits of the Nidhi before and after making provision for tax for the last three financial years. (vi) dividend declared by the Nidhi as per latest three balance sheets. (vii) mode of repayment of deposit. &....
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....rm but before the signature of the depositor, the following verification clause by the depositor shall be appended namely : "I have gone through the financial and other statements / particulars / representations furnished / made by the Nidhi and after careful consideration I am making the deposit with the Nidhi at my own risk and volition"; (C) Every Nidhi or Mutual Benefit Society shall obtain proper introduction of the new depositors before opening their accounts and accepting the deposits and keep on its record the evidence on which it has relied upon for the purpose of such introduction; (f) (i) every Nidhi or Mutual Benefit Society shall, - (A) allot to every deposit holder at least a minimum of ten equity shares or shares equivalent to Rs. 100/- whichever is higher; (B) offer interest on fixed and recurring deposits as determined by the Regulatory Authority, subject to other conditions; (C) permit Fixed Deposit Account to be foreclosed by the depositor subject to the following conditions: &n....
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....e board and the individual loan shall not exceed fifty percent of the value of property offered as security. The period of such loan shall not exceed five years. Explanation: Existing Nidhi companies shall bring down the ratio of loan against immovable property to fifty percent of the overall loan outstanding within two years from the date of this notification; (C) fixed deposit, Kisan Vikas Patra/National Savings Certificate Scheme/insurance policies and other Government Securities; Provided that such securities shall be pledged with the company duly discharged and the lock-in period of such securities shall not fall beyond the loan period or one year whichever is earlier. (ii) The rate of interest charged on loan given by every such company shall not exceed five percent above the highest rate of interest offered on deposits by the Nidhi and shall be based on reducing balance method; (iii) give loan to any member/shareholder subject to the following ceiling on each loan: (A) two lakh rupees, where the total amount of deposits of such Nidhi or....