India, Sept. 24 -- The Government of India has issued a release:
MCA has issued an advisory to the common public about 'Nidhi Companies' and their functioning, warning against investment decisions without their proper background check, especially if there is a promise of high returns.
During examination of NDH-4 applications by MCA, it was noticed that many 'Nidhi' Companies are not complying with the applicable provisions of the Act and rules made thereunder in toto. It has also been observed that many of the companies functioning as Nidhi company have not submitted their NDH-4 application within the stipulated time frame prescribed under Nidhi Rules.
Every company desirous to function as "Nidhi" is required to file application in Form ...