New Delhi [India], July 26 (ANI): Lok Sabha on Monday passed the Factoring Regulation (Amendment) Bill, 2021 without discussion as opposition continued its protests on various issues despite the chair urging it to take part in the debate on the legislation.
The bill seeks to help micro, small and medium enterprises by providing added avenues for getting credit facility, especially through Trade Receivables Discounting System.
Finance Minister Nirmala Sitharaman moved the bill for passage.
The statement of objects and reasons of the bill state that an increase in the availability of working capital may lead to growth in the business of the micro, small and medium enterprises sector and also boost employment in the country.
The bill seeks to amend the definitions of "assignment", "factoring business" and "receivables", so as to bring them in consonance with international definitions and also to insert a new definition of "Trade Receivables Discounting System".
It seeks to widen the scope of financiers and to permit other non-banking finance companies also to undertake factoring business and participate on the Trade Receivables Discounting System platform for discounting the invoices of micro, small and medium enterprises.
Lok Sabha has been witnessing protests from opposition parties over their demands since the start of the monsoon session last week. (ANI)