Nidhi Companies are not allowed to do the following business:  a)	They are not allowed to start the business of chit funds, Insurance, Hire Purchase Finance, Leasing Finance and acquisition of shares issued by companies.  b)	Nidhi Company cannot issue securities such as preference shares, debentures etc.  c)	They are prohibited from opening any current account with its members.  d)	 It cannot enter into partnership for doing lending and borrowing business.  e)	It is not allowed to acquire any other company.