Small Business - BSE receives in-principle approval from RBI for TReDS business

BSE Limited’s wholly owned subsidiary BSE Technologies Private Limited (BSE Tech) has received an in-principle approval from the Reserve Bank of India (RBI) for setting up and operating Trade Receivables Discounting System (TReDS) under the Payments and Settlement Systems Act, 2007, the company said in an exchange filing.

TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers.

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These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs), the exchange filing said.

“The TReDS platform will bring all the aforesaid participants together for facilitating uploading, accepting, discounting, trading and settlement of the invoices / bills of MSMEs,” it further said.

The TReDS business of BSE will commence only after the receipt of final approval and certificate of license from RBI.

“BSE Tech provides wide range of IT solutions focusing on commodities, banking and financial services markets. With the in-principle authorisation provided by RBI to set up TReDS, BSE Tech will now have the capability to provide an option to MSME to manage their working capital more efficiently through the TReDS platform,” Ashish Kumar Chauhan, BSE Managing Director (MD) and Chief Executive Officer (CEO) said.

“BSE is always at the forefront in creating the eco system around MSMEs and keeping this in view we are widening our product offering to MSMEs. We are hopeful with the launch of this TReDS platform the financing issues of MSMEs will be better addressed and contribute to their growth,” he added.

BSE Tech is an established player in e-enabling the businesses in financial services sectors. BSE Tech is a leading provider of IT solutions with focus on Commodities, Banking and Financial Services markets in India.