Rs. 20 lakh Net Owned Fund must for Nidhi companies

New Delhi, April 20

Amending the rules governing Nidhi companies, the Union government made it’s prior declaration mandatory for public companies before they start accepting deposits.

A public company incorporated as a Nidhi with a share capital of Rs 10 lakh should first get itself declared as a Nidhi by applying in form NDH-4 with a minimum membership of 200 and a Net Owned Fund (NOF) of Rs 20 lakh within 120 days of its incorporation.

Further, promoters and directors of the company concerned have to meet the criteria of fit and proper person as laid down in the rules. —