(The Gist of PIB) Nidhi Companies [MARCH-2020]

(The Gist of PIB) Nidhi Companies

The government has given up to one-year time for Nidhi companies to update their details.

In order to make the regulatory regime for Nidhi Companies more effective and also to accomplish the objectives of transparency and investor friendliness in the corporate environment of the country.
The Central Government has recently amended the provisions related to NIDHI under the Companies Act and the Rules.
The amended provisions of the Companies Act (Section 406) and Nidhi rules (as amended w.e.f. 15.08.2019) require that the Nidhi companies have to apply to the Central government for updation of their status/ declaration as Nidhi Company in Form NDH-4.
The time-frame for applying to Central Government in form NDH-4 is as under:
Companies incorporated as Nidhi before Nidhi Amendment Rules, 2019 i.e. 15.08.2019 have to apply within a period of one year from the date of its incorporation or within 9 months of the Nidhi Amendment Rules i.e. 15.08.2019 whichever is later.
Companies incorporated as Nidhi on or after Nidhi Amendment Rules, 2019 i.e. 15.08.2019 have to apply within 60 days of expiry of one year from the date of incorporation or extended period (as granted by concerned Regional Director).