MCA Notifies Nidhi (Amendment) Rules, 2024



Quick Summary
The Ministry of Corporate Affairs (MCA) has published the Nidhi (Amendment) Rules, 2024, via Notification No. G.S.R. 413(E) on July 16, 2024. These amendments aim to refine the regulatory framework for Nidhi companies, boosting operational transparency and safeguarding depositors' interests. A key change specifies that a company can only use the name "Nidhi Limited" if it has been officially declared as such under the relevant section of the Companies Act.

The Ministry of Corporate Affairs (MCA) has issued Notification No. G.S.R. 413(E) dated July 16, 2024, announcing the Nidhi (Amendment) Rules, 2024. This notification introduces significant changes aimed at improving the regulatory framework governing Nidhi companies, enhancing their operational transparency, and ensuring better protection for depositors.

Nidhi Rules 2024 Amended by MCA

Official copy of the notification has been mentioned below

MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 16th July, 2024

G.S.R. 413(E). - In exercise of the powers conferred by sub-section (1) of section 406 read with sub-sections
(1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the
following rules, further to amend the Nidhi Rules, 2014, namely:-

1. (1) These rules may be called the Nidhi (Amendment) Rules, 2024.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Nidhi Rules, 2014, in rule 4, in sub-rule (5,) the following proviso shall be inserted, namely: -

"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."

[F. No. 5/62/2023-CL-VII-MCA]
MANOJ PANDEY, Addl. Secy.

Note: The principal rules were published in the Gazette of India vide notification number G.S.R. 258(E), dated the
2nd April, 2014, subsequently amended vide notification number G.S.R. 467(E) dated the 1st July, 2019, subsequently amended vide notification number G.S.R. 114(E) dated the14th February, 2020, further amended, vide notification number G.S.R. 301(E) dated the 19th April, 2022 and were last amended, vide notification number G.S.R. 35 (E) dated the 20th January, 2023.

FAQ :

The Nidhi (Amendment) Rules, 2024 are new regulations issued by the Ministry of Corporate Affairs (MCA) to update the framework governing Nidhi companies.

The Nidhi (Amendment) Rules, 2024 were issued on July 16, 2024, through Notification No. G.S.R. 413(E).

The primary objectives are to improve the regulatory framework, enhance operational transparency for Nidhi companies, and ensure better protection for depositors.

A significant change is that a company can only use the name "Nidhi Limited" if it has been declared as such under sub-section (1) of section 406 of the Companies Act, 2013.

Section 406 of the Companies Act, 2013 is relevant to Nidhi companies.




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