competition success review

competition success review 

competition success review Published this article page no  95 Use of Fintech is being encouraged to enhance transaction based lending using the data generated by the emarketplace. o Fintech refers to computer programs and other technology used to support or enable banking and financial services. Emarket linkage  Emarket linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions. Interest Subvention for MUDRAShishu Loans  The scheme addresses the issue of Small businesses under MUDRA which have been disrupted and whose capacity to pay their EMIs has been depleted. o The current portfolio of MUDRAShishu loans is approximately Rs 1.62 Lakh crore (Maximum loan amount of being Rs. 50000).  To address this Government of India will provide Interest subvention of 2% for prompt payees of loans for a period of 12 months. GENERAL POLICY REFORMS ANNOUNCED AS PART OF THE ECONOMIC PACKAGE 12.7.1. SIGNIFICANT MEASURES ANNOUNCED Support provided to State Governments  Centre has extended fiscal support to states in the form of devolution of taxes revenue deficit grants advance release of SDRF and amount released from Health Ministry for direct anti COVID19 activities competition success review buy. 

competition success review 

competition success review

competition success review 

competition success review Published this article page no  94 The scheme will help to expand MSME size as well as capacity and it may also encourage MSMEs to get listed on Stock Exchanges. Revised Definition of MSMEs  Need for change in definition There has been a longpending demand for revisions as low threshold in MSME definition have created a fear among MSMEs of graduating out of the benefits given to the sector and hence killing the urge to grow.  Changes announced in the definition o Introduction of additional criteria of turnover. o Distinction between manufacturing and service sector to be eliminated. Global tenders to be disallowed up to Rs. 200 crores  The idea behind this move is to protect Indian MSMEs from foreign competition. o This will be a step towards Self Reliant India and will directly support Make in India initiative and will also help MSMEs to increase their business in the long term and help them grow. Relief to Contractors  Extension of up to 6 months (without costs to contractor) by all Central Agencies (like Railways Ministry of Road Transport & Highways and Central PWD). Mother Fund Daughter Fund 1 Daughter Fund 3 Daughter Fund 2 89  Coverage under the package Construction works goods and services contracts obligations like completion of work intermediate milestones etc. Use of Fintech   competition success review buy.

competition success review 

competition success review

competition success review

competition success review Published this article page no  93 In the 221 resolved cases 44% recovery has been achieved since inception of IBC 2016.  About 13566 cases involving a total amount of Rs. 5.01 lakh crores have been withdrawn before admission under provisions of IBC as of Feb 2020. This indicates how IBC has been encouraging settlements. 88 About CGTMSE Government of India launched Credit Guarantee Scheme (CGS) to strengthen credit delivery system and facilitate flow of credit to the MSE sector. To operationalize this scheme Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). What is Subordinate debt? Capital distribution of any entity can be broadly divided in 5 categories as shown in the image. In the case of liquidation of the entity subordinated debt is the loan thats paid after all other corporate debts and loans are repaid. . Equity infusion for MSMEs through Fund of Funds (Allocation Rs. 50000 crore)  The scheme aims to create a fund of funds with a corpus of Rs. 10000 crore for longterm equity infusion in MSMEs.  Operational Mechanism o The Fund of Funds will be operated through a Mother Fund and few daughter funds. o This fund structure will help leverage Rs. 50000 crore of funds at daughter funds level competition success review buy. 

competition success review

competition success review

competition success review

competition success review Published this article page no  92  Including the provisions of Part IXA (Producer Companies) of Companies Act 1956 in Companies Act 2013. o This will allow primary producers to organise themselves to gain a maximum profit from the market oriented economy.  Penalties have been lowered with regard to all defaults for Small Companies One person Companies Producer Companies and Start Ups. MEASURES ANNOUNCED EXCLUSIVELY FOR MSME SECTOR Overview The MSME sector has been disproportionately affected by the pandemic due to its informal nature. In the light of this various measures have been taken to increase liquidity and provide long term reforms like revised definition of MSMEs. SIGNIFICANT MEASURES ANNOUNCED Subordinate Debt for Stressed MSMEs (Allocation Rs. 20000 crore)  This scheme aims to support to stressed MSMEs which have NonPerforming Assets (NPAs).  Under the scheme promoters of MSMEs will be given debt from banks which will be infused into the MSMEs as equity.  The government will facilitate Rs 20000 crore of subordinate debt to MSMEs. For this purpose it will provide Rs 4000 crore to the Credit Guarantee Fund Trust for Micro and Small Enterprises which will provide partial credit guarantee support to banks providing credit under the scheme.  Close to two lakh MSMEs are likely to benefit from this scheme. Performance of IBC up till this point  competition success review buy.

competition success review

competition success review

competition success review

competition success review Published this article page no  91 Government is working in mission mode towards the next phase of Ease of Doing Business. o It includes easy registration of property faster disposal of commercial disputes and a simpler tax regime. Corporate Law measures  As part of decriminalization of Company Law defaults in 2018 16 compoundable offences such as shortcomings in CSR reporting inadequacies in board report filing defaults delay in holding Annual General Meeting (AGM) have been decriminalised.  Adoption of an Integrated Web based Incorporation Form namely Simplified Proforma for Incorporating Company Electronically Plus (SPICe+) which extends 10 services of different Ministries and one State Government service through a single form.  A Databank of Independent Directors has been launched along with rationalization of provisions regarding Related Party Transactions (RPTs). Insolvency and Bankruptcy Code (IBC) related measures  Minimum threshold to initiate insolvency proceedings has been raised to Rs. 1 crore (from Rs. 1 lakh which indirectly insulates MSMEs).  Special insolvency resolution framework for MSMEs under Section 240A of the Code to be notified soon.  Accounting the distress created by COVID19 fresh initiation of insolvency proceedings up to one year has been suspended depending upon the pandemic situation.  Central Government has been empowered to exclude COVID19 related debt from the definition of default under the Code for the purpose of triggering insolvency proceedings. Other measures  Direct listing of securities by Indian public companies has been made permissible in foreign jurisdictions.  Private companies which list Nonconvertible Debentures (NCDs) on stock exchanges will not be regarded as listed companies. This will indirectly ease the compliance issues faced by private firms when classified as listed companies. o NCDs are a debt instrument with a fixed tenure and people who invest in these receive regular interest at a certain rate competition success review buy. 

competition success review