1. Membership and Shareholding Rules

• Only individual persons can become members of a Nidhi Company.
  
• A member must subscribe to a minimum number of equity shares as specified in the Articles of Association.
  
• Minors, partnership firms, companies, and trusts are not eligible for membership.
  
• Members must comply with the company’s internal rules and deposit policies.
  
• Termination of membership may occur upon misconduct, insolvency, or default.
  

2. Deposit and Loan Regulations

• Deposits are accepted only from members in the form of savings, fixed, and recurring deposits.
  
• The total amount of deposits must not exceed 20 times the Net Owned Funds.
  
• Loans are granted only to members and must be secured against approved securities.
  
• The maximum loan amount and interest rates are subject to limits prescribed by the Nidhi Rules.
  
• The company must maintain a minimum of 10% of its deposits as unencumbered term deposits.
  

3. Governance and Management Structure

• The company must have at least 3 directors and follow the provisions under the Companies Act, 2013.
  
• Meetings of the Board of Directors and shareholders must be held as per statutory requirements.
  
• The Board is responsible for approving loans, managing deposits, and ensuring compliance.
  
• Roles and responsibilities of directors and officers are defined in the bylaws and internal policies.
  
• All key decisions must be recorded in minutes and maintained in the statutory registers.
  

4. Operational Restrictions and Prohibited Activities

• The company must not carry out any business other than borrowing from and lending to members.
  
• It cannot issue preference shares, debentures, or other debt instruments.
  
• Activities such as chit funds, leasing, hire-purchase, and insurance are not permitted.
  
• The company must not advertise deposit schemes to the general public.
  
• Use of brokers, agents, or third parties for business promotion is strictly prohibited.
  

5. Compliance and Reporting Provisions

• The company must file half-yearly and annual returns such as NDH-1, NDH-3, AOC-4, and MGT-7.
  
• Statutory books and records, including member registers, deposit registers, and account books, must be maintained.
  
• Financial statements must be audited annually by a qualified Chartered Accountant.
  
• The company must ensure regular submission of forms and declarations to the Registrar of Companies.
  
• All activities must align with the Companies Act, 2013, and Nidhi Rules, 2014, to avoid penalties.