Enforcement of amendments in provisions relating to Nidhi

MCA has appointed 15th August, 2019 as the date on which section 406 (Provisions relating to Nidhi and its application, etc.) as substituted by the Companies (Amendment) Act, 2017 shall come into force.

Simultaneously, MCA has amended the Nidhi Rules, 2014 w.e.f. 15th August, 2019. Key highlights of the amendments in Nidhi rules are as follows:

• Definition of ‘Nidhi’ earlier given in the section has now been inserted in the rules to mean a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with the rules made by the Central Government for regulation of such class of companies.
• A new form NDH-4 has been added for filing application for ‘declaration as Nidhi Company’ and for ‘updating of status as Nidhi’.
• Declaration of Nidhis- Every Nidhi incorporated on or after 15th August, 2019 shall file Form NDH-4 within 60 days from the date of expiry of:
• one year from the date of incorporation; or
• further period of upto one year after getting extension of time from the Regional Director.
• Compliance with aforesaid rule by Nidhis: Every company functioning on the lines of a Nidhi company but has either not applied for or has applied for and is awaiting notification to be a Nidhi under section 620A of the Companies Act, 1956 and every Nidhi incorporated under the Companies Act, 2013 before 15th August, 2019, shall also get itself declared as Nidhi within a period of one year from the date of its incorporation or within a period of six months from the date of 15th August, 2019, whichever is later.
• Companies declared as Nidhis under previous company law to file Form NDH-4: Every company which had been declared as a Nidhi under section 620A of the Companies Act, 1956 shall file Form NDH-4 for updating its status:

  However, no fees shall be charged for filing Form NDH-4, in case it is filed within 6 month from 15th August, 2019.

• In case a company does not comply with the aforesaid requirements, it shall not be allowed to file Form No. SH-7 (Notice to Registrar of any alteration of share capital) and Form PAS-3 (Return of Allotment).
• In case of non-payment of deposit or part thereof, the depositor may approach to NCLT having jurisdiction over Nidhi. Previously, the power was vested with the Registrar of Companies.
• Now, the power relating to enforce compliance on Nidhi company has been vested with the Central Government. Previously, such power was vested with the Regional Director.

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Click here to view amended rules

Availability of form BEN-2 from 02nd July, 2019

MCA has amended the Companies (SBO) Rules, 2018 to substitute Form BEN-2 with new form and is likely to be made available for filing on the MCA portal w.e.f. 2nd July 2019. Now, companies need to file said form by 31st July, 2019.

Click here to view amended rules