Government advises investors to verify antecedents and status of Nidhi Company before investing their money

The Union Government has advised investors to verify the antecedents and status of a Nidhi Company before investing their money in such companies. In a statement released, the Ministry of Corporate Affairs said that while examining the applications of the erstwhile Nidhi Companies it has been observed that several companies have not been complying with the provisions of the rules. It added that in light of the observations, the applications filed by these companies to be declared as Nidhi Companies have been rejected.