Nidhi Company in Governed by Section 406 of the Companies Act, 2013 and Company Nidhi Rules, 2014. The Company is incorporated as a Public Company.
As per Section 406, “Nidhi” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and saving amongst its members, receiving deposit from, and lending to, its members only, for their mutual benefit.