Correct option is A
The correct answer is: (A) 406
Explanation:
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) that conducts financial dealings exclusively among its members.
It aims to cultivate the habit of savings and thrift and provides financial aid through loans from member deposits.
Information Booster:
Under the Companies Act, 2013, Section 406 provides legal recognition and regulatory provisions for Nidhi Companies
They are required to have at least 200 members within one year of incorporation.
The Net Owned Funds (NOF) must be a minimum of ₹10 lakhs.
Nidhi Companies cannot issue preference shares, debentures, or any other debt instruments.
They can open only three branches after three years of profitability and need prior approval from the Registrar of Companies.
English
100 Questions
200 Marks
60 Mins
