Govt Mandates Cpses & Cos With Over 250 Cr Turnover To Join Treds Platforms By March 2025
Date
11/8/2024 2:11:05 PM
(MENAFN- KNN India)
New Delhi, Nov 8 (KNN)
The government of India has issued a significant directive mandating large corporations and public sector enterprises to integrate with the Trade Receivables Discounting System (TReDS) platforms.
The announcement, made under Section 9 of the Micro, Small and Medium Enterprises Development Act, 2006, sets a clear deadline for compliance by March 31st, 2025.
Under the new requirements, two categories of entities must join the TReDS platforms authorised by the Reserve bank of India.
These include companies registered under the Companies Act, 2013, with an annual turnover exceeding Rs. 250 crore, as well as all Central Public Sector Enterprises (CPSEs).
This regulatory move supersedes previous notifications from the Ministry of Micro, Small and Medium Enterprises, marking a significant step toward streamlining financial transactions and improving liquidity access for smaller enterprises in the supply chain.
The TReDS platform facilitates the financing of trade receivables of MSMEs from corporate buyers through multiple financiers.
(KNN Bureau)
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