NSE, the national stock exchange is all set to launch a new trade receivable and credit exchange platform for micro, small and medium enterprises (MSMEs). This new exchange will help MSMEs to file their bill against large companies, which can be accepted electronically and auctioned so that these small enterprises are paid immediately.
The new exchange platform will be a joint venture of NSE and Small Industries Development Bank of India (SIDBI) and could be the first specialized exchange for micro SMEs. The platform would be known as ‘Trades Exchange’ as it’ will be based on the Trade Receivables Discounting System (TReDS). The new platform will be operational by the end of this year.
The move is in line with the Reserve Bank of India (RBI) concept to implement such a model for the benefit of a vast section of small businesses in the county, which are still facing the pressure on financial sustainability.
So let’s discuss some questions related to this post :
1. The NSE is going to launch a new exchange platform for which segments ?
2. The new exchange platform will be joint venture of which two organization ?
Courtesy : Business Standard