Rule 4 - Incorporation and incidental matters. - Nidhi Rules, 2014

4. Incorporation and incidental matters.- (1) A Nidhi 1 [****] shall be a public company and shall have a minimum paid up equity share capital of 3 [ ten lakh rupees ] . 4 [ 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 2 [****] Nidhi shall have the last words Nidhi Limited as part of its name. 5 [ 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. ] ********* Notes 1. Omitted vide Notification No. [F. No. 1/24/2013-CL-V(Part)] dated 01-07-2019 w.e.f. 15-08-2019 before it was read as to be incorporated under the Act 2. Omitted vide Notification No. [F. No. 1/24/2013-CL-V(Part)] dated 01-07-2019 w.e.f. 15-08-2019 before it was read as Company incorporated as a 3. Substituted vide Notification No. G.S.R. 301(E) dated 19-04-2022 before it was read as, five lakh rupees 4. Inserted vide Notification No. G.S.R. 301(E) dated 19-04-2022 5. Inserted vide Notification No. G.S.R. 413(E) dated 16-07-2024