SME bill gets Parliament nod

NEW DELHI, INDIA: The Parliament on Tuesday passed a bill to regulate the factoring business, aimed at helping micro, small and medium enterprises (MSMEs) in dealing with liquidity problems.

The Upper House (Rajya Sabha) gave its green signal to the The Regulation of Factors (Assignment of Receivables) Bill 2011, which was passed by the Lok Sabha last week.

“This (bill) will help in mitigating the payment problem of the MSME units. Factors will be regulated by the Reserve Bank of India. The bill is applicable to all types of industry whether it is small, medium or big,” said, Namo Narain Meena, minister of state for Finance.

The minister further said that the debt restructuring scheme for the medium and small enterprises is in place under this Bill.