Introduction

A Nidhi Company, governed by Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014, operates as a mutual benefit institution where financial activities such as deposits and lending are carried out exclusively among members. To ensure transparency, legal compliance, and accurate record-keeping, Nidhi Companies are required to maintain several statutory registers. These registers are critical for regulatory inspections, annual filings, and internal control and serve as a record of the company’s financial and governance activities. This explanation outlines the key statutory registers that a Nidhi Company must maintain and the procedures involved in maintaining them.

Register of Members

One of the most crucial registers maintained by a Nidhi Company is the Register of Members. It contains details such as the name, address, occupation, date of admission, number of shares held, and unique member identification number. The register must be updated regularly to reflect additions, deletions, and changes in membership. Since lending and deposit acceptance are restricted to members only, this register serves as the primary reference point for verifying eligibility for transactions.

Register of Shares and Share Transfers

This register records the details of equity shares issued to members. It includes the date of allotment, certificate number, distinctive numbers of shares, and any transfer or forfeiture of shares. Although Nidhi Companies do not engage in frequent share transfers due to their restrictive structure, this register must be updated when any changes occur, such as share redemption in case of cessation of membership.

Register of Deposits

As Nidhi Companies accept deposits only from members, a Register of Deposits must be maintained. This register includes the date of deposit, type of deposit (savings, fixed, or recurring), interest rate, maturity date, and payment mode. It also records renewals and premature withdrawals. Accurate maintenance of this register is necessary to calculate total outstanding deposits and to comply with the deposit-to-fund ratio as per Nidhi Rules.

Register of Loans

The Register of Loans records all loans disbursed to members. It includes the member’s name, date of loan, loan amount, interest rate, tenure, security pledged, repayment schedule, and outstanding balance. This register ensures that loans are issued only to eligible members and within permissible limits. It is also useful for monitoring repayments and for use during audits and regulatory inspections.

Register of Charges

While Nidhi Companies issue loans against securities, they must maintain a Register of Charges. This document details the nature of the security received, its assessed value, date of charge creation, and satisfaction. Though charges are typically not registered with the Registrar of Companies in the case of member loans, maintaining this register provides internal control and legal reference in case of default.

Register of Directors and Key Managerial Personnel

This register contains details of all directors and senior officers of the company. It includes their names, DIN (Director Identification Number), appointment and resignation dates, shareholding in the company, and any directorships in other companies. Maintaining this register ensures compliance with governance rules and supports transparency in managerial decisions.

Register of Board and General Meeting Minutes

Nidhi Companies must maintain a record of proceedings of Board meetings and general meetings. The minutes must include attendance, agenda, discussions, resolutions passed, and voting details. These records must be signed by the chairperson and preserved permanently. These registers are vital for demonstrating compliance with governance norms and statutory decision-making processes.

Register of Contracts and Related Party Transactions

To ensure ethical and transparent financial conduct, Nidhi Companies must maintain a register documenting contracts involving directors or related parties. This includes the nature of the contract, the parties involved, and approval status. This register must be presented during Board meetings and updated as per Section 189 of the Companies Act, 2013.

Conclusion

The maintenance of statutory registers in a Nidhi Company is essential for legal compliance, operational clarity, and internal governance. These registers help in monitoring member activity, financial transactions, corporate decisions, and managerial responsibilities. They are also indispensable during audits, regulatory reviews, and legal proceedings. Accurate and up-to-date registers reflect the professionalism and transparency of the Nidhi Company and ensure its long-term sustainability and trustworthiness.

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