INSUBCONTINENT EXCLUSIVE:
BSE Technologies is a wholly owned subsidiary of BSE which provides IT solutions.New Delhi: BSE Technologies on Tuesday announced that it
has received an in-principle approval from the Reserve Bank of India (RBI) to set up and operate Trade Receivables Discounting System
(TReDS), under the Payments and Settlement Systems Act, 2007
BSE Technologies is a wholly owned subsidiary of BSE which provides IT solutions.TReDS is an electronic platform that facilitates financing
or discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers
The trade receivables could be due from corporates and other buyers, including government departments and public sector undertakings
uploading, accepting, discounting, trading and settlement of the invoices or bills of MSMEs
The TReDS business of BSE will commence only after the receipt of final approval and certificate of license from the RBI."Ashish Kumar
Chauhan, Managing Director and Chief Executive Officer, BSE said, "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
We are hopeful with the launch of this TReDS platform the financing issues of MSMEs will be better addressed and contribute to their
growth."BSE's Electronic Gold ReceiptsIn another set of development, BSE has mentioned that it is ready to introduce electronic gold
receipts (EGRs) on its platform, which will help in creating uniform price structure of the yellow metal across the country.This comes after
the SEBI Board cleared a proposal for gold exchange
Currently, India allows trading only in gold derivatives and Gold exchange trade funds (ETFs), unlike some other nations which have spot
exchanges for physical trade in gold.Also Read: SEBI's Rules For Gold Exchange, Silver ETFs - Other Top DecisionsThe market regulator said
that "EGRs will have trading, clearing and settlement features akin to other securities that are currently available in India."
