The government has given up to one-year time for Nidhi companies to
update their details.
In order to make the regulatory regime for Nidhi Companies more
effective and also to accomplish the objectives of transparency and investor
friendliness in the corporate environment of the country.
The Central Government has recently amended the provisions related to
NIDHI under the Companies Act and the Rules.
The amended provisions of the Companies Act (Section 406) and Nidhi
rules (as amended w.e.f. 15.08.2019) require that the Nidhi companies have
to apply to the Central government for updation of their status/ declaration
as Nidhi Company in Form NDH-4.
The time-frame for applying to Central Government in form NDH-4 is as
Companies incorporated as Nidhi before Nidhi Amendment Rules, 2019 i.e.
15.08.2019 have to apply within a period of one year from the date of its
incorporation or within 9 months of the Nidhi Amendment Rules i.e.
15.08.2019 whichever is later.
Companies incorporated as Nidhi on or after Nidhi Amendment Rules, 2019
i.e. 15.08.2019 have to apply within 60 days of expiry of one year from the
date of incorporation or extended period (as granted by concerned Regional