Check Nidhi firms’ antecedents before investing money: Govt

The government on Tuesday again urged investors to check the antecedents of Nidhi companies before putting in their money, as at least 348 entities have failed to meet the criteria to be declared as Nidhi companies. This is the second time in six months that the corporate affairs ministry has come out with an advisory as there are a large number of companies, which, though functioning as Nidhi companies, have not applied for such a status under the relevant rules. The ministry, in a release on Tuesday, said 348 companies failed to meet requisite criteria for declaration as Nidhi companies under the Companies Act, 2013, and Nidhi Rules 2014.