As per the instructions issued by the Ministry of MSME on 2 November, 2018 all companies registered under the Companies Act, 2013 with a turnover of more than INR 500 Crores are required to get themselves on-boarded to the TReDS platform.

The TReDS platform enables MSME sellers to discount their invoices raised on the company through an auction mechanism, paving the way for prompt realisation of trade receivables.

The Registrar of Companies in each State is the competent authority to monitor the compliance of instructions by companies under its jurisdiction. The instructions do not provide a due date for companies to register/ get on-boarded to the TReDs, and hence, it is likely that the MCA would release a notification or an order with further details in this regard.

The Ministry of MSME had on 2 November, 2018 issued a notification directing all companies that obtain supplies of goods/ services from micro and small enterprises, and whose payments to such enterprises exceed 45 days (from the date of acceptance of goods or services), to submit a half yearly return to the MCA, stating the amount of payment due and the reason for delay.

In this regard, on 22 January, 2019 the MCA issued the MSME Rules requiring the specified company to submit returns (described below) with details of the payments due to micro and small enterprises along with the reasons for delay in making such payments.