Spike in TREDS Registrations as March 31 Deadline Approaches for Companies

With the March 31 deadline approaching, there has been a noticeable surge in registrations on the Trade Receivables Discounting System (TReDS) platform by companies with an annual turnover of Rs 250 crore, as per agency report. The Ministry of Micro, Small and Medium Enterprises (MSME) had earlier set this date as the final deadline for mandatory registration on the platform.

According to a government notification, all companies with a turnover exceeding Rs 250 crore and Central Public Sector Enterprises (CPSEs) involved in procurement from MSMEs are required to register on the TReDS platform by March 31, 2025. Presently, registration on TReDS is already mandatory for all CPSEs and companies with turnover above Rs 500 crore.

Sandeep Mohindru, Director of M1xchange, stated that since the MSME Ministry's notification issued on November 7, 2024, there has been a significant rise in registration activity. He noted that the number of registration requests has more than doubled since the notification was released.

The increased participation is expected to improve liquidity for MSMEs by facilitating quicker invoice payments through the digital discounting platform.