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A Nidhi ltd. Company is a type of company in the indian non-banking finance sector, recognized under Sec. 406 the Company Act 2013. Their for business is borrowing lending money between their members, They are also known as Permanent fund, Benefit Fund, Mutual Fund and Mutual Benefit Company. They are regulated by Ministry of Co-operate affairs. Nidhi Company existed even prior to the existence of Companies Act 2013. The basic concept of Nidhi is “Principle of mutual”. These companies are more popular in South India and 80% of Nidhi Companies are located in Tamil Nadu.