A Nidhi Company is different from a regular finance investment company or a Non-Banking Finance company (NBFC), as it deals only with its shareholders or members, for the main purpose of mutual benefits of its members. A Nidhi Company accept deposits only its members, and lends funds only to them on demand. Again, a Nidhi Company is not entitled to carry out business/activities related with hire purchase financing, leasing finance, chit funds, acquisition of securities issued by any corporate body, etc. or issue any debt instruments (such as reference share, debentures, etc.) in any form.