Capital structure of Nidhi Companies

Nidhi Companies indian bureaucracy
Nidhi Companies indian bureaucracy

Recommendations made by various Expert Groups or Committees on Nidhis related matters were duly examined/considered by the Government while prescribing Nidhi Rules, 2014. As per Nidhi Rules, 2014 issued under section 406 of the Companies Act, 2013, a Nidhi company shall be a public company and shall have a minimum paid up equity share capital of five lakh rupees. Nidhi companies shall not issue preference shares, debentures or any other debt instrument by any name or in any form whatsoever. A Nidhi company shall not admit a body corporate or trust as a member. Further, every Nidhi company shall, within a period of one year from the commencement of Nidhi Rules, 2014, ensure that it has not less than two hundred members and that it has Net Owned Funds of ten lakh rupees or such higher amount as the Central Government may specify.

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