Acceptance of deposits is the only reason why Nidhi Company is created by any person, so the rule 11 and 13 automatically becomes the most important rules of Nidhi Rules, 2014. These rules should be followed properly to avoid any hindrance in the business
Rule 3 of Nidhi Rules, 2014 define the term “Net Owned Funds” as an aggregate of paid up equity share capital and free reserves as reduced by accumulated losses and intangible assets appearing in the last audited Balance sheet.
Nidhi Company is being imposed with a lot of restrictions. The most important restrictions is which directly impact the business of Nidhi Company. Unlike other companies, Nidhi Company is not allowed to open branch.