Rule 4 Incorporation and incidental matters
(1) A Nidhi 1to be incorporated under the ActText omitted by amendmentWords "to be incorporated under the Act" omitted by G.S.R. 467(E), dated 1st July, 2019 (Nidhi (Amendment) Rules, 2019), w.e.f. 15th August, 2019. shall be a public company and shall have a minimum paid up equity share capital of 2"ten lakh rupees" subs. for "five lakh rupees" vide G.S.R. 301(E), dated 19th April, 2022 (Nidhi (Amendment) Rules, 2022), w.e.f. 19th April, 2022.ten lakh rupees.
3Proviso ins. by the same G.S.R. 301(E), dated 19th April, 2022, w.e.f. 19th April, 2022.Provided that every Nidhi existing as on the date of commencement of the Nidhi (Amendment) Rules, 2022, shall comply with this requirement within a period of eighteen months from the date of such commencement.
(2) On and after the commencement of the Act, no Nidhi shall issue preference shares.
(3) If preference shares had been issued by a Nidhi before the commencement of this Act, such preference shares shall be redeemed in accordance with the terms of issue of such shares.
(4) Except as provided under the proviso to sub-rule (e) to rule 6, no Nidhi shall have any object in its Memorandum of Association other than 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.
(5) Every 4Company incorporated as aText omitted by amendmentWords "Company incorporated as a" omitted by G.S.R. 467(E), dated 1st July, 2019 (Nidhi (Amendment) Rules, 2019), w.e.f. 15th August, 2019. "Nidhi" shall have the last words 'Nidhi Limited' as part of its name.
5Proviso ins. by G.S.R. 413(E), dated 16th July, 2024 (Nidhi (Amendment) Rules, 2024), w.e.f. 16th July, 2024.Provided that a company shall not use the words "Nidhi Limited" in its name unless it is declared as such under sub-section (1) of section 406 of the Act.
1. Words "to be incorporated under the Act" omitted by G.S.R. 467(E), dated 1st July, 2019 (Nidhi (Amendment) Rules, 2019), w.e.f. 15th August, 2019.
2. "ten lakh rupees" subs. for "five lakh rupees" vide G.S.R. 301(E), dated 19th April, 2022 (Nidhi (Amendment) Rules, 2022), w.e.f. 19th April, 2022.
3. Proviso ins. by the same G.S.R. 301(E), dated 19th April, 2022, w.e.f. 19th April, 2022.
4. Words "Company incorporated as a" omitted by G.S.R. 467(E), dated 1st July, 2019 (Nidhi (Amendment) Rules, 2019), w.e.f. 15th August, 2019.
5. Proviso ins. by G.S.R. 413(E), dated 16th July, 2024 (Nidhi (Amendment) Rules, 2024), w.e.f. 16th July, 2024.