Q. Consider the following statements regarding Nidhi Companies:
1.A Nidhi Company is registered under the Companies Act, 2013 and does not require a license from the Reserve Bank of India (RBI).
2.Nidhi Companies are allowed to accept deposits from the general public but not allowed to lend to non-members.
3.Nidhi Companies are prohibited from engaging in insurance, securities trading, or issuing preference shares and debentures.
Which of the above statements is/are correct?
Answer: B
Notes:
Explanation:
- Nidhi Companies are registered under Section 406 of the Companies Act, 2013 and are exempt from requiring RBI licensing, though they fall under the NBFC category.
- Nidhi Companies cannot accept deposits from the general public. They can accept deposits only from their registered members and also lend only to members, not to outsiders.
- They are prohibited from engaging in activities like insurance, chit funds, securities trading, and from issuing preference shares, debentures, or any other debt instruments.
Source: Indian Economy (Ramesh singh)
