Nidhi Company

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Nidhi company is one that belongs to the non-banking Indian finance sector and is recognized under section 406 of the Companies Act, 2013. It's known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.

Nidhi company is a known as incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit, It is more Popular in south India.

Governing law of Nidhi company?

These governed rules by nidhi Rules, 2014, incorporated in the nature of public limited company and hence, They have two set of norms one is Public Limited Company as per Company Act, 2013 and another is Nidhi Company Act, 2014.