PRESENTATION ON NIDHI COMPANIES

Chapter XXVI

The Concept of Nidhi – Discussion

Regulatory Framework

Act/Rules – Specific to Nidhi Cos.

Exemptions to Nidhi Companies

Unresolved Issues

Wrap Up Story

Whether Non- Banking Financial company ?

Nidhis are also included in the definition of NBFCs which operatemainly in the unorganized money market. However, since 1997,NBFCs have been brought increasingly under the regulatory ambitof the Reserve Bank of India (RBI). Non-banking financial entitiespartially or wholly regulated by the RBI include:

NBFCs comprising equipment leasing (EL), hire purchase finance(HP), Loan Company (LC), investment Company (IC) and residuarynon-banking (RNBC) companies; mutual benefit financialcompany (MBFC), i.e. nidhi company; Mutual benefit company(MBC),i.e. Potential Nidhi company & miscellaneous non-banking company (MNBC), i.e. chit fund company.

Since Nidhis come under one class of NBFCs, RBI is empowered toissue directions. However since Nidhis deal with their shareholder-members only, RBI has exempted the notified Nidhis from the coreprovisions of the RBI Act and other directions applicable to NBFCs.

Nidhi companies are exempt from Section 45 IA (Requirements ofregistrations & net owned funds), 45 IB (Maintenance of LiquidAssets) & 45 IC (Creation of Reserve Fund) of RBI Act – RBI circularNo:DNBS.PD.CC. NO.101/03.02.04/2007-08 DATED 2.7.2007

Nidhi Cos are regulated by Ministry of Corporate Affairs (MCA). Eventhough Nidhis are regulated by the provisions of the Companies Act,they are exempted from certain provisions of the Act, as applicable toother companies, due to their limited operations within members.

ANNEX-I

o Under Companies Act, 1956: Section 620 A

Notification GSR No:555(E) dated 26th July 2001

GSR 308 (E) Dated 30th April 2002,GSR 384 (E) Dated29th May 2002, GSR 408 (E) Dated 31st May 2002, GSRNo:775(E) 29th September 2003, GSR 202 (E) Dated31ST March 2006, GSR 517 (E) Dated 31st August, 2006

GSR 326 (E) Dated 8th April, 2011

o Under Companies Act 2013: Section 406

Nidhi Rules 2014 & GSR.465(E) Dated 5th June 2015

U/S.462 of Companies Act, 2013

Regulatory Framework:

POWER TO MODIFY ACT IN ITS APPLICATION TO NIDHIS, ETC.,

In this section, "Nidhi" or "Mutual Benefit Society" means acompany which the Central Government may, bynotification in the Official Gazette, declare to be a Nidhi orMutual Benefit Society, as the case may be.

The CG may, by notification in the Official Gazette, directthat any of the provisions of this Act specified in thenotification - (a) shall not apply to any Nidhi or MutualBenefit Society ; or (b) shall apply to any Nidhi or MutualBenefit Society with such exceptions, modifications andadaptations as may be specified in the notification.

Power to Modify Act in its Application to Nidhis:

“Nidhi” means a company which has been incorporated asa Nidhi with the object of cultivating the habit of thrift andsavings amongst its members, receiving deposits from, &lending to, its members only, for their mutual benefit, &which complies with such rules as are prescribed by theCG for regulation of such class of companies.

CG may, by notification, direct that any of the provisionsof this Act shall not apply, or shall apply with suchexceptions, modifications and adaptations as may bespecified in that notification, to any Nidhi or Nidhis of anyclass or description as may be specified in thatnotification.

Section: 406 Provisions relating to Nidhis & its application,etc., (Section 620 A of Companies Act, 1956 retrieved)

(1) In this section, "Nidhi" or "Mutual Benefit Society" means acompany which the Central Government may, by notification inthe Official Gazette, declare to be a Nidhi or Mutual BenefitSociety, as the case may be.

(2) The Central Government may, by notification in the OfficialGazette, direct that any of the provisions of this Act specified inthe notification— (a) shall not apply to any Nidhi or Mutual Benefit Society; or (b) shall apply to any Nidhi or Mutual Benefit Society with such

exceptions, modifications and adaptations as may be specified in the notification.

Object

Applicability of Nidhi Rules

Incorporation of Nidhi Companies

Requirements to be a Nidhi Company

Restrictions & Prohibitions

Share Capital and Allotment.

Acceptance Of Deposits By Nidhis

WHAT DOES THE ACT / RULES PROVIDES FOR?

Loans to Members by Nidhi & Security for Loans

Directors

Dividends

Auditors

Prudential Norms

Opening & Closing of Branches

Returns & Filings

Penalty for Non Compliance

WHAT DOES THE ACT / RULES PROVIDES FOR?

OBJECT OF NIDHI:

Section 406(1) Corresponds to Section 620 A of the 1956 Act

◦ “Nidhi means a company which has been incorporated as A Nidhi with

the object of cultivating the habit of thrift, savings amongst itsmembers receiving deposits only from individuals enrolledas members and by lending only to individuals, alsoenrolled as members, for their mutual benefit and which complieswith such rules as are prescribed by Central Government for regulationof such Nidhi companies

Moot Question: Is there is any other object a Nidhi company can carry?

◦ Section 620 A of 1956 Act, merely defines Nidhi as companywhich the Central Government may, by notification in theOfficial Gazette, declare to be a Nidhi without specifyinganything about activities of a Nidhi.

◦ Section 406 of 2013 Act, SPECIFIES the activity; of a Nidhi andthere is no need for Central Government to notify companies asNidhi & it is defined by its activity & compliance with Rules &not by Registration [till the amendment is notified].

◦ Moot Question: What is the status of companies which has not obtained approval or filed for approval post amendment?

NIDHI – A STATUS BY ACTIVITY OR REGISTRATION

(a) Companies declared as a Nidhi or Mutual Benefit Societyunder sub-section (1) of Section 620A of the Companies Act,1956;

(b) every company functioning on the lines of a Nidhicompany or Mutual Benefit Society but has either not appliedfor or has applied for and is awaiting notification to be a Nidhior Mutual Benefit Society under sub-section (1) of section 620A ofthe Companies Act, 1956; and

(c) Every company incorporated as a Nidhi pursuant to theprovisions of Section 406 of the Act.

APPLICABILITY OF NIDHI RULES (RULE 2)

◦ “Non-Performing Asset” means a borrowal account in respectof which interest income or instalment of loan towardsrepayment of principal amount has remained unrealised fortwelve months;

◦ “Doubtful Asset” means a borrowal account which hasremained a non-performing asset for more than two years butless than three years;

◦ “Sub-Standard Asset” means a borrowal account which is anon performing asset:

IMPORTANT DEFINITIONS

◦ “Loss Asset” means a borrowal account which has remained anon-performing asset for more than three years or where in theopinion of the Board, a shortfall in the recovery of the loanaccount is expected because the documents executed maybecome invalid if subjected to legal process or for any otherreason;

◦ “Net Owned Funds” means the aggregate of paid up equityshare capital and free reserves as reduced by accumulatedlosses and intangible assets appearing in the last auditedbalance sheet:

◦ Moot Question: Whether Re-schedulement or renegotiationor rephasement of loan instalment or interest will change thestatus of classification of the loan account?

INCORPORATION OF NIDHI

Nidhi Company shall be a Public Company

Except as otherwise provided, no Nidhi shall have any object inits Memorandum of Association other than the object ofcultivating the habit of thrift and savings etc.,

Nidhis which have adhered to all the provisions of these rules &may provide locker facilities on rent to its members subject tothe rental income from such facilities not exceeding 25% ofthe gross income.

A Nidhi shall not admit a body corporate or trust as a member.

Every Company incorporated as Nidhi shall have the words“Nidhi Limited” as a part of its name.

Moot Questions?

Whether it is mandatory for the existing Nidhi companies tochange its name?

Every Nidhi shall, within a period of one year from thecommencement of these rules, ensure that it has:

(a) Not less than Two hundred members;

(b) Net Owned Funds of Ten lakh rupees or more;

(c) Unencumbered term deposits of not less than 10% of theoutstanding deposits as specified in Rule 14; AND

(d) Ratio of Net Owned Funds to deposits of not more than1:20 i.e. For every one equity the nidhi can borrow twentytimes.

Moot Question: What is status of a company which could not comply with the above requirement?

REQUIREMENT TO BE A NIDHI

Approach Regional Director

Rule 5 (3) Apply to RD within 30 days from the closeof the first financial year in form NDH 2 forextension of time and RD may consider it and passorder within 30 days of application

If failure extends beyond second financial year,Nidhi shall not accept from deposits from thesecond FY till it complies with rule, besides liable forpenal consequences under the Act.

No Nidhi shall-

A. Carry on the business of chit fund, hire purchasefinance, leasing finance, insurance or acquisition ofsecurities issued by anybody corporate;

B. Issue preference shares, debentures or any other debtinstrument by any name or in any form whatsoever;

C. Open any current account with its members;

Moot question: Whether Savings account be opened?

RESTRICTIONS OR PROHIBITIONS

d. Acquire another company by purchase of securities or controlthe composition of the Board of Directors of any other companyor enter into any arrangement for the change of its management,unless it has passed a special resolution in its general meeting andalso obtained the previous approval of the Regional Director

(e) Pledge any of the assets lodged by its members as security;

(f) Take deposits from or lend money to anybody corporate;

(g) shall not carry on the business otherthan the business ofborrowing or lending in its own name (except locker facilities)

(h) Issue or cause to be issued any advertisement in any formfor soliciting deposit:

(i) Accept deposits from or lend to any person other thanmembers

(j) Pay any brokerage or incentive for mobilising deposits/granting loans.

(k) enter into any partnership arrangement in its borrowing orlending activities

SHARE CAPITAL AND ALLOTMENT

Nidhi shall issue equity shares of the nominal value of notless than ten rupees each except

Declared Nidhi under 620A & Every company functioning onthe lines of a Nidhi Company or Mutual Benefit Society.

Every Nidhi shall allot to each deposit holder AT LEAST aminimum of 10 Equity shares or shares equivalent to onehundred rupees. S.B account & RD accountholder shall holdat least one equity share of rupees ten.

Certain Exemptions provided U/s.42 of Companies Act 2013under notification, but post Cos Amendment Act, 2017 the

exemption notification needs to be modified.

Rule 8 (1) A Nidhi shall not admit a body corporate or trust as a

member.

(2) Except as otherwise permitted under these rules,every Nidhi shall ensure that its membership is not reducedto less than two hundred members at any time.

(3) A minor shall not be admitted as a member of Nidhi:

Provided that deposits may be accepted in the name of aminor, if they are made by the natural or legal guardian who isa member of Nidhi

Moot Question: How membership may get reduced?

(refer exemption notification)

ACCEPTANCE OF DEPOSITS

(Rule 11)

Maximum Limit:

A Nidhi shall not accept deposits exceeding TWENTY (20)times of its Net Owned Funds (NOF) as per its last auditedfinancial statements.

Existing Companies (before 26th July, 2001) and which haveaccepted deposits in excess of the aforesaid limits, the sameshall be restored to the prescribed limit by increasing the NetOwned Funds position or alternatively by reducing the depositbased on the ratio of net owned funds as given under Rule 11(2)and such companies shall not accept fresh deposits or renewexisting deposits if such acceptance or renewal leads toviolation of the prescribed ratio.

Maximum time upto 31.3.2017

Terms of Deposits:

Minimum period of 6 Months (except Recurring depositswhich shall be for a minimum period of 12 Months) and amaximum period of 60 months.

Maximum balance in a savings deposit account qualifyingfor interest shall not exceed Rs.1,00,000 at any point oftime and the rate of interest shall not exceed 2% above therate of interest payable on savings bank account bynationalised banks.

A Nidhi may offer interest on fixed and recurring depositsat a rate not exceeding the maximum rate of interestprescribed by the Reserve Bank of India which the Non-Banking Financial Companies can pay on their publicdeposits (12.5%).

Shall not repay within 3 months

After 3 months before 6 months no interest shall be paid

After 6 months before expiry interest shall bereduced by 2% from the rate which it was accepted.

In case of death of depositor it shall be repaid to thesurviving depositor or nominee or legal heir withinterest upto the date of repayment without anyreduction in the interest rate.

Un-encumbered term deposits [Rule 14]

◦ Nidhi Company shall invest in unencumbered term depositswith a scheduled commercial bank (other than a co-operativebank or a regional rural bank),or post office deposits an amountwhich shall not be less than 10% of the deposits outstanding atthe close of business on the last working day of the secondpreceding month:

◦ Temporary withdrawal subject to prior approval of the RegionalDirector for repayment of deposits.

Moot Question: Whether loan can be taken against the other bank deposits (FDs) held by the nidhi in Banks?

Application for acceptance of deposit shall contain certainmandatory particulars as prescribed under Rule 12 whichinter alia provides for financial position, terms andconditions of deposit, right of depositors to approachConsumer Disputes Redressal forums, proof ofidentity/address, introduction etc.,

KYC to be complied with.

Rule 12 Application form for deposit

LOANS TO MEMBERS

&

SECURITY FOR LOANS

Rule 15 Nidhi shall provide loans only to its members subject to the following limits :

Moot Question: Whether a member can borrow fromdifferent branches exceeding the amount of Rs.15 lac

Total Deposits accepted from Members* Maximum Loan amount to A MEMBER

a Less than Rs.2.00 Crore Rs.2,00,000

b More than Rs.2.00 Crore but Less than

Rs.20.00 Crore

Rs.7,50,000

c More than Rs.20.00 Crore but Less than

Rs.50.00 Crore

Rs.12,00,000

d More than Rs.50.00 Crore Rs.15,00,000

Where a Nidhi has not made profits continuously in thethree preceding financial years, it shall not make anyfresh loans exceeding 50% of the maximum amounts ofloans specified in clauses (a), (b), (c)or (d).

A member who has defaulted in repayment of loan shallnot be eligible for further loan

The amount of deposits shall be calculated on thebasis of the last audited annual financial statements.

SECURITY FOR LOAN:

GOLD, SILVER AND JEWELLERY: (Repayment period notexceeding ONE Year) – Upto 80% of the value.

IMMOVABLE PROPERTY:

◦ Total loans against immovable property [excludingmortgage loans granted on the security of property byregistered mortgage, being a registered mortgage undersection 69 of the Transfer of Property Act, 1882 (IV of1882)] shall not exceed 50% of the overall loanoutstanding on the date of approval by the board.

◦ Individual loan shall not exceed 50% of the value ofproperty offered as security and the period of repaymentof such loan shall not exceed seven years.

LOAN AGAINST FIXED DEPOSIT RECEIPTS, NATIONAL SAVINGSCERTIFICATES, OTHER GOVERNMENT SECURITIES AND INSURANCEPOLICIES:

◦ Such securities duly discharged shall be pledged & maturity date ofsuch securities shall not fall beyond the loan period or one yearwhichever is earlier:

◦ Provided further that in the case of loan against fixed deposits, theperiod of loan shall not exceed the unexpired period of the fixeddeposits.

INTEREST ON LOAN: The rate of interest shall not exceed 7.5%above the highest rate of interest offered on deposits calculated onreducing balance method. Nidhi shall charge the same rate of intereston the borrowers in respect of the same class of loans

Rule 17 Subject to compliance of Section 152 (4) & notdisqualified U/s.164 of the Act 2013

(1) The Director shall be a member of Nidhi.

(2) The Director of a Nidhi shall hold office for a term up to 10consecutive years

(3) The Director shall be eligible for re-appointment only after theexpiration of two years of ceasing to be a Director.

(4) Where the tenure of any Director in any case had already beenextended by the Central Government, it shall terminate on expiryof such extended tenure.

Moot Question? Whether an Independent director of a Nidhicompany can hold for a term upto 10 years

Rule 18 Shall not declare dividend exceeding 25% or suchhigher amount as may be specifically approved by the RegionalDirector for reasons to be recorded in writing and further subjectto the following conditions, namely:-

(a) an equal amount is transferred to General Reserve;

(b) there has been no default in repayment of matured depositsand interest; and

(c) it has complied with all the rules as applicable to Nidhis.

Rule 19: No Nidhi shall appoint or re-appoint an individual as

auditor for more than one term of five consecutive years.

No Nidhi shall appoint or re-appoint an audit firm as auditor for

more than two terms of five consecutive years

Cooling of period 2 years from the completion of his or itsterm.

The period prior to the commencement of these rules shall betaken into account in calculating the period of five consecutiveyears or ten consecutive years, as the case may be

PRUDENTIAL NORMS

Rule 20: Prudential norms

Every Nidhi shall adhere to the prudential norms forrevenue recognition and classification of assets inrespect of mortgage loans or jewel loans.

Income including Interest or other charges on NPA shallbe recognised only when it is actually realised. Ifrecognised before NPA, the same has to be reversed inP&L of succeeding year.

Note on Financial Statement shall disclose details ofprovisions made on income reversal and NPA.

The aggregate of loan outstanding against thesecurity of gold or jewellery to be recovered orrenewed within 3 months from the due date ofrepayment.

Provision for unrealised loan amount after 3months in current FY

No income shall be recognised on such loansoutstanding beyond 3 months

The loan to value ratio shall not exceed 80%

NATURE OF ASSET PROVISION REQUIRED

Standard Asset No provision

Sub-standard Asset 10% of the aggregate outstanding

amount

Doubtful Asset 25% of the aggregate outstanding

amount

Loss Asset 100% of the aggregate outstanding

amount

In case of Mortgage Loan classification of assetsshall be made and provisioning shall be as follows

(a) The Notes on the financial statements of a yearshall disclose-

(i) the total amount of provisions, if any, to be made on account of income reversal and non-performing assets remaining unrealised;

(ii) the cumulative amount provided till the previous year;

(iii) the amount provided in the current year; and (iv) the balance amount to be provided. (b) Such disclosure shall continue to be made until the

entire amount to be provided has been provided for.

OPENING & CLOSING OF BRANCHES

(Rule 10)

Only if it has earned net profits after taxcontinuously during the preceding threefinancial years.

Open up to three branches within the districtsubject to compliance above.

More branches within or outside the districtprior permission of the Regional Director withan intimation to ROC within 30 days of openingbranch.

Moot Question: Whether branches can beoutside the State?

No branches or collection centres or offices ordeposit centres, outside the State where itsregistered office is situated.

No branches or collection centres or offices ordeposit centres etc., can be opened unless Annualreturn & Financial statement (up to date) are filed

Closing of branches shall be in accordance withRule 10(6) which inter alia provides foradvertisement of closure, information to Registrar ofcompanies within 30 days etc.,

RETURNS & FILINGS

i) Return on statutory compliances in FormNDH-1 within 90 days from the close of theFinancial Year

ii) Nidhi not complying with Members and Netowned Funds requirement, shall within 30days from the close of the first financial year,apply to the Regional Director in Form NDH-2for extension of time

iii) Half yearly return with the Registrar in FormNDH-3 within thirty days certified by aCS/CA/CWA

iv) The Auditor of the company shall furnish acertificate every year on compliance with theprovisions and such certificate shall beannexed to the audit report

POWER TO ENFORCE COMPLIANCE – RULE 24

ROC may call for such information or returns from Nidhi as hedeems necessary and may engage the services of CA/CS/CWAin practice for assistance

Regional Director may appoint a Special Officer to take overthe management of Nidhi in case of Nidhi which has violatedthe Rules or MOA/AOA subject to opportunity of being heard

PENALTY FOR NON-COMPLIANCE RULE 24

The company and every officer of the companywho is in default shall be punishable with finewhich may extend to Rs.5000, and where thecontravention is a continuing one, with afurther fine which may extend to Rs.500 forevery day after the first, during which thecontravention continues.

Moot Question: Is the penalty very less?

EXEMPTIONS TO NIDHI COS

AS NOTIFIED ON 5TH JUNE 2015

S.NO PROVISION OF THE

ACT

MODIFICATION, EXCEPTIONS & ADAPTATION

1 Section 20 (2) -

Service of

documents.

the document may be served only onmembers who hold shares of more thanRs.1000 in face value or more than 1% of thetotal paid-up share capital of the Nidhiswhichever is less

For the other shareholders, document maybe served by a public notice in newspapercirculated in the district where theRegistered Office of the Nidhi is situated;and publication of the same on the noticeboard of the Nidhi

S.NO PROVISION OF THE ACT MODIFICATION, EXCEPTIONS &

ADAPTATION

2 SECTION 42 :OFFER OR

INVITATION FOR

SUBSCRIPTION OF

SECURITIES ON PRIVATE

PLACEMENT.

EXCEPT SUB SECTION

(1)EXPLANATION (II) TO THE

SUB-SECTION (2) SUB-SECTION

(4), (6), (8), (9) AND (10)

NEED TO BE AMENDED

CONSEQUENT TO COS.

AMENDMENT ACT

i. Nidhi can make PrivatePlacement

ii. Subscription can be made byany number of persons withoutrestriction of 50/200

iii. Allotment of shares within 60days / separate bank account.

iv. Subscription money shall be byway of cash ( as sub-section (5)is exempted

S.NO PROVISION OF THE ACT MODIFICATION, EXCEPTIONS &

ADAPTATION

3 CLAUSE (B) OF SUB-SECTION

(1) OF SECTION 47. VOTING

RIGHTS.

Shall apply, subject to the modification

that no member shall exercise voting

rights on poll in excess of five

percent of the total voting rightsof equity shareholder

4 SECTION 62. FURTHER

ISSUE OF SHARE

CAPITAL

Shall not apply

5 SUB-SECTION (1) OFSECTION 67 Restrictionson purchase by companyor giving of loans by it forpurchase of its shares

Shall not apply, when shares are

purchased by the Company from a

member on his ceasing to be a

depositor or borrower and it shall

not be considered as reduction of

capital under section 66 of the

Companies Act, 2013

S.NO PROVISION OF THE ACT MODIFICATION, EXCEPTIONS &

ADAPTATION

6 SUB-SECTION (5) OF SECTION

123 - DECLARATION OF

DIVIDEND

Shall apply, subject to the modification

that any Dividend may be paid by

crediting the same to the account of

the member, if the dividend is not

claimed within 30 days from the date of

declaration of the dividend

7 SECTION 127- PUNISHMENT

FOR FAILURE TO DISTRIBUTE

DIVIDENDS

Shall apply, subject to the modification

that where the dividend payable to a

member is Rs.100 or less, it shall be

sufficient compliance of the provisions of

the section, if the declaration of dividend

is announced in the local language in

one local newspaper and displayed on

the notice board of the Nidhis for at least

three months

S.NO PROVISION OF THE

ACT

MODIFICATION, EXCEPTIONS & ADAPTATION

8 136. Right of

member to copies

of audited financial

statement

Shall apply, subject to the modification that, in the

case of members who do not individually or jointly

hold shares of more than Rs.1000 in face value

or more than 1% of the total paid-up share

capital whichever is less, it shall be sufficient

compliance with the provisions of the section if an

intimation is sent by public notice in newspaper

stating the date, time and venue of AGM and the

financial statement with the enclosures can be

inspected at registered office of the company, and

financial statement with enclosures are affixed in the

Notice Board of the Company and a member is

entitled to vote either in person or through proxy.

S.N

O

PROVISION OF THE ACT MODIFICATION, EXCEPTIONS &

ADAPTATION

9 Section 160. Right of

persons other than

retiring directors to stand

for directorship

In case of candidature of Director , a

notice in writing under his hand

signifying his candidature deposit

of ten thousand rupees or such

higher amount as may be

prescribed in the place of Rs. 1

lakh

10 185. Loan to directors, etc Shall not apply, provided the loan is

given to a director or his relative in

their capacity as member and such

transaction is disclosed in the

annual accounts by a note

S.NO PROVISION OF THE ACT MODIFICATION, EXCEPTIONS & ADAPTATION

11 SECTION 197. OVERALL

MAXIMUM MANAGERIAL

REMUNERATION AND

MANAGERIAL REMUNERATION IN

CASE OF ABSENCE OR

INADEQUACY OF PROFITS

Shall apply with the modification that the

remuneration of a director who is neither

managing director nor whole time director or

manager for performing special services may

be paid by way of monthly payment subject to

the approval of the company in general meeting

Provided that no approval of the company in

general meeting shall be required where,-

(a) a Nidhi does not have a Managing director ora whole-time director or a manager;

(b) the remuneration payable during a financialyear to all the directors of the Nidhi does notexceed ten per cent. of the net profits of suchNidhi or fifteen lakh rupees, whichever isless; and

(c) a remuneration payable under clause(b)is approved by a special resolution passed inthis behalf by the Nidhi.

S.NO PROVISION OF THE ACT MODIFICATION, EXCEPTIONS & ADAPTATION

12 SECTION 403 Fee for

filing, etc

Shall apply, with the modificationthat the filing fees in respect ofevery return of allotment undersub-section (9) of section 42 shallbe calculated at the rate of onerupee for every one hundred rupeesor parts thereof on the face value ofthe shares included in the returnbut shall not exceed the amount ofnormal filing fee payable.

OTHER EXEMPTIONS:

The provisions relating to E-Voting u/s.108 of Companies Act, 2013

Rule 9A Issue of securities in dematerialised form by unlisted companies under Companies (Prospectus and allotment of securities) Third Amendment Rules, 2018

Transfer of Unclaimed shares

Nidhi with branches – monitoring / governance & compliances of Nidhi Rules

Prevention of Misuse & Risk associated in Nidhi Cos.

Recourse available to depositors

All other compliances based on turnover, net worth & Profits unless exempted in the Nidhi Rules or exemption notification

.

.