A Nidhi Company cannot admit body corporate or trust as a member. Further a minor shall not be added as a member of Nidhi Company. However, deposits can be accepted in the name of minor, if they are made natural or legal guardian who is a member of Nidhi

The rate of interest to be charged on any loan given by a Nidhi shall not exceed seven and half per cent above the highest rate of interest offered on deposits by Nidhi. In other words, if you are offer 7%, your highest rate on deposits, then you can charge not more than 14.5% on deposits given.

1. Every Nidhi shall issue equity shares of the nominal value of not less than ten rupees each.Provided that this requirement shall not apply to a company referred to in sub-rules (a) and (b) of rule 2
2. No service charge shall be levied for issue of shares.
3. Every Nidhi shall allot to each deposit holder at least a minimum of ten equity shares or shares equivalent to one hundred rupees: Provided that a savings account holder and a recurring deposit account holder shall hold at least one equity share of rupees ten.

1. The Director shall be a member of Nidhi.
2. The Director of a Nidhi shall hold office for a term up to ten consecutive years on the Board of Nidhi.
3. The Director shall be eligible for re-appointment only after the expiration of two years of ceasing to be a Director.
4. Where the tenure of any Director in any case had already been extended by the Central Government, it shall terminate on expiry of such extended tenure.
5. The person to be appointed as a Director shall comply with the requirements of sub-section (4) of section 152 of the Act and shall not have been disqualified from appointment as provided in section 164 of the Act.

A Nidhi shall not declare dividend exceeding twenty five per cent. or such higher amount as may be specifically approved by the Regional Director for reasons to be recorded in writing and further subject to the following conditions, namely

1. An equal amount is transferred to General Reserve.
2. There has been no default in repayment of matured deposits and interest
3. It has complied with all the rules as applicable to Nidhis.

1. No Nidhi shall appoint or re-appoint an individual as auditor for more than one term of five consecutive years
2. No Nidhi shall appoint or re-appoint an audit firm as auditor for more than two terms of five consecutive years; Provided that an auditor (whether an individual or an audit firm) shall be eligible for subsequent appointment after the expiration of two years from the completion of his or its term.

Filing of half yearly return Every company covered under rule 2 shall file half yearly return with the Registrar in Form NDH-3 along with such fee as provided in Companies (Registration Offices and Fees) Rules, 2014 within thirty days from the conclusion of each half year duly certified by a company secretary in practice in practice.

Auditor’s certificate The Auditor of the company shall furnish a certificate every year to the effect that the company has complied with all the provisions contained in the rules and such certificate shall be annexed to the audit report and in case of non-compliance, he shall specifically state the rules which have not been complied with.