269SS

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This discussion examines the applicability of Section 269SS to Nidhi Companies, particularly concerning transactions limited to their members. Despite Nidhi companies being exempt from RBI registration and operating similarly to mutual associations, the consensus is that Section 269SS does apply. This is primarily due to an RBI circular (DNBR (PD) CC.No.086/03.10.001/2016-17) and the fact that Nidhi companies do not fall under any exceptions to this section.

K.T.Antony

K.T.Antony (Querist)
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05 February 2020 Is S. 269SS applicable to a Nidhi Company since it deals only with its members.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 February 2020 Applicable in view of RBI Circular no DNBR (PD) CC.No.086/03.10.001/2016-17
(Notification).

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 February 2020 Yes applicable for following reasons:

1) RBI Circular no DNBR (PD) CC.No.086/03.10.001/2016-17 (Notification).

2) Also it doesnt fall in exception to the said sec.

K.T.Antony

K.T.Antony (Querist)
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06 February 2020 Nidhi company is exempted from registration with RBI. Then how these directions apply
to a Nidhi Company. More over it is similar to a Mutual Association.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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09 February 2020 S. 269SS is applicable to a Nidhi Company as it doesn not falls in exception to same.

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