The Government of India has instructed Central Public Sector Enterprises and all companies with a turnover of Rs 500 crore or more to get themselves on-boarded on TReDS, the Centre informed the Lok Sabha on Monday.
Trade Receivable Discounting System (TReDS) is an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers.
In a written reply in the Upper House, Narayan Rane, Union Minister for MSME stated that sub-section 3 of Section 18 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, provides that where the conciliation fails under the provisions of the Act, the Micro & Small Enterprises Facilitation Council (MSEFC) shall either itself take up the dispute for arbitration or refer it to any institution or centre providing alternate dispute resolution services for such arbitration.
He further stated sub-section 4 of Section 18 of the MSMED Act, 2006 that provides that the MSEFC or the centre providing alternate dispute resolution services shall have jurisdiction to act as an Arbitrator or Conciliator under this section in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India.
The minister said that there is a mechanism, namely Trade Receivable Discounting System (TReDS) working as per the guidelines issued by RBI.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor