General restrictions on Nidhi Company


General restrictions or prohibitions 

- No Nidhi shall-
(a) carry on the business of chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities issued by any body corporate;
(b) issue preference shares, debentures or any other debt instrument by any name or in any form whatsoever;
(c) open any current account with its members;
(d) acquire another company by purchase of securities or control the composition of the Board of Directors of any other company in any manner whatsoever or enter into any arrangement for the change of its management, unless it has passed a special resolution in its general meeting and also obtained the previous approval of the Regional Director having jurisdiction over such Nidhi;
 
Explanation - For the purposes of this sub-rule, “control” shall have the same meaning assigned to it in clause (27) of section 2 of the Act;
(e) carry on any business other than the business of borrowing or lending in its own name:
Provided that Nidhis which have adhered to all the provisions of these rules may provide locker facilities on rent to its members subject to the rental income from such facilities not exceeding twenty per cent. of the gross income of the Nidhi at any point of time during a financial year.
(f) accept deposits from or lend to any person, other than its members;
(g) pledge any of the assets lodged by its members as security;
(h) take deposits from or lend money to any body corporate;
(i) enter into any partnership arrangement in its borrowing or lending activities;
(j) issue or cause to be issued any advertisement in any form for soliciting deposit:
Provided that private circulation of the details of fixed deposit schemes among the members of the Nidhi carrying the words “for private circulation to members only” shall not be considered to be an advertisement for soliciting deposits.
(k) pay any brokerage or incentive for mobilising deposits from members or for deployment of funds or for granting loans.

Ozg Nidhi / Mutual Benefit Co. Experts
VoIP Phone # 09811415831-37-92-94
Email: ask@mutualbenefit.co.in

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Note: As you know, gathering info, resources and hiring right services are a competitive process. So, you need to follow the basic biz ethics and not send spam emails or not make any unsolicited phone calls to concerned organization (either gov or pvt) with long, unrelated requests for information and support without knowing about it in correct manner else, chances of getting your work done will be drastically reduced. Also, this will discredit your Organization and can bring bad reputation to you as an individual. 

Please, email your exact requirement to: ask@mutualbenefit.co.in for getting all sorts of information and resources related to compliance, regulatory and licensing of Nidhi Company by email as well as on phone for FREE. You may also book an appointment for in-person meeting with Ozgian (experts at Ozg, find more @ www.ozgian.com) at any of Ozg Rep Office near to your place.



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