Nidhi Amendment Rules 2020

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These rules enter into force on the day of their publication in the Official Journal, i.e. 15 February 2020. The amendments are made to Rule 23A of the Nidhi Rules 2014, which provide that any company operating on the model of a Nidhi or mutual company and any Nidhi established under the Act may be declared as such under Rule 3A within one year from the date of its incorporation or within nine months from the date of entry into force. Nidhi rules (amending rules). 2019, whichever is later. However, if a corporation does not comply with the requirements of this rule, it is not entitled to issue Form No.SH-7 (Notice to the Registrar of any change in capital stock) and Form PAS-3 (Repayment of Allotment). The amendment led to changes to Article 23 B. Therefore, under this rule, no fee will be charged for filing Form NDH-4 if it is filed within nine months (previously 6 months) of the coming into force of the Nidhi (Amendment) Rules, 2019. The amendment inserts a new Article 8(4).

Paragraph 4 of the newly inserted Article 8 provides that a member may not transfer more than fifty per cent of its share (at the time of drawing on the loan or deposit) during the continuation of such loan or deposit. The member shall at all times retain the minimum number of shares required by Article 7(3). 1. Short title and beginning.– (1) These rules can be called Nidhi Rules (amendments), 2022. (ii) in paragraphs 4 and 5, the words « or collection centres or depositaries or depository institutions or under any designation » shall be omitted. According to the amendment, a new 3-B rule was inserted as follows: The amendment revised the level of net own resources from 10 lakhs to 20 lakhs or such higher amount as the central government may determine from time to time. Any Nidhi existing on 19.04.2022 must comply with this requirement within eighteen months from the start date. 3. (1) In Article 3A of these Regulations, the following provisions are inserted after the third reservation: (5) If the central government is satisfied that the company meets the requirements of subsections (2) and (3), it shall announce this in the Official Gazette and declare it Nidhi or Mutualist, as the case may be: The sixth reservation provides: this Rule 3A does not apply to companies incorporated under the name Nidhi as of the coming into force of these rules. In clauses 12 and 20, as a result of this amendment, the term « silver » was added in addition to gold.

In addition, the amended rules provide that a corporation that has not met the requirements of that rule or does not comply with that requirement at or after the coming into force of the amending rules, or if the application filed by the corporation on Form NDH-4 has been rejected by the government, the corporation may not collect deposits from its members or make loans to them. Rule 5 lays down requirements for minimum number of members, net own funds, etc. The amendment provides that this regulation does not apply to companies founded after 19.04.2022. 2. In the Nidhi Rules 2014 (hereinafter referred to as « the Rules »), in Rule 3 of subsection (1), the following clause is inserted after subparagraph (a), namely: Under the Companies Act 1956, approximately 390 companies were declared as Nidhi companies only. In 2014-2019, more than ten thousand companies will be created. However, only about 2,300 companies filed a declaration on Form NDH-4. After reviewing the NDH-4 form, it was found that the companies had not complied with the applicable provisions of the Nidhi Law and Rules of 2014 (as amended). In order to safeguard the interests of the general public, it has become essential that before becoming a member, one must ensure that a company is declared Nidhi by the central government, and in this sense, few necessary/significant changes have been made to the rules that apply to companies to be established under the Nidhi (amendment) rule.

2022, as under:- 17 February 2020 | by TeamLease RegTech Legal Research Team (2) In Form NDH-3 of those Rules, the following is inserted under reference number 8 after (vi):-`(vii) Net own funds: _____`; The MCA notified the Nidhi (amendment) rules, 2022. Under the amended rules, public companies wishing to be declared as Nidhi must apply for the declaration as Nidhi on Form NDH-4 within 120 days of incorporation if these two conditions are met. ii. The promoters and directors of the Corporation must meet the criteria of relevance and relevance set out in the Rules. 10. In section 12 of these Regulations, the word « silver » is inserted after the word « gold ». Following the amendment of the Companies Act, 2013 w.e.f. 15.08.2019 and the resulting amendments to the Nidhi rules, 2014 w.e.f.

15.08.2019, companies incorporated as Nidhis had to apply to the central government for a declaration in form NDH-4 within 14 months of incorporation if they had been incorporated after the entry into force of the Nidhi (amendment) rules w.e.f 15.08.2019 and within 09 months after the entry into force of the Nidhi (amendment) rules w.e.f 15.08.2019 if they were registered as Nidhis after 2014 but before 15.08.2019. The amendment inserts a new Article 3b. This rule states that after 19.04.2022, any company wishing to be declared as Nidhi must submit the NDH form within 120 days of the date of incorporation. For the purposes set out above, the Corporation shall comply with the following: The second newly inserted reservation provides that no enterprise that has not complied with the requirements of this rule or does not comply with this requirement on or after the effective date of the Nidhi (Amendments) Rules, 2022, or if the application submitted by the Society in Form NDH-4 is or has been rejected by the central Government, collects a deposit from its members or grants a loan to its members in accordance with the provisions of these Regulations from the date of non-compliance or the date of entry into force of these rules or from the date of rejection of the application on Form NDH-4, whichever is later. Rule 6 contains the general restrictions or prohibitions for Nidhi enterprises. The amendment replaced Rule 6(d) with a new Article and also inserted Article 6(l). It is essential that the provisions of Rule 3B do not apply to SOEs established prior to the implementation of the amendments to the 2022 Nidhi Amendment Rules. class= »MsoNormal » style= »text-align: justify; >The Department of Corporate Affairs (MCA) publishes the Nidhi (Second Amendment) Rules 2020 on February 14, 2020 to further amend the Nidhi Rules, 2014. The amendment introduced a second and third reservation to Article 23A, which deals with compliance by certain undertakings with Rule 3A. Nearly 12 amendments were introduced into the Nidhi rules.

We can see the amendments gradually. Note: The most important rules were published in the Official Gazette of India under number G.S.R. 258(E) of 31 March 2014 and last amended with notification number G.S.R. 114(E) of 14 February 2020. 301(E).—In exercising the powers conferred by subsection (1) of section 406 in conjunction with subsections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby issues the following rules to further amend the Nidhi Rules of 2014, namely: – Rule 15(1) provides that a Nidhi loan may only be granted to its members.