What is the main restriction placed on Nidhi Companies in India in terms of their business operations? Question 13Answer a. Cannot conduct business in chit funds, hire-purchase financing, leasing finance, insurance, and securities b. Cannot participate in government tenders c. Cannot issue loans to their members or shareholders d. Cannot accept foreign investments
The main restriction placed on Nidhi Companies in India in terms of their business operations is:
a. Cannot conduct business in chit funds, hire-purchase financing, leasing finance, insurance, and securities.
Nidhi Companies are primarily formed for the purpose of borrowing and lending money to their members, and they are restricted from engaging in various other financial activities.