MSMED amendment bill could be an 'IBC moment' for small enterprises: Report
The new legislation on MSME is expected to help improve payment discipline among buyers of goods and services sold by small businesses, and could bring in an 'IBC moment' for enterprises facing delayed payments, a report said on Monday.
It could become an 'IBC (Insolvency and Bankruptcy Code) moment' for delayed payments by improving payment discipline among buyers and unlocking working capital for small businesses, said the report by an arm of rating agency Crisil.
The bankruptcy law (IBC) has helped banks to get rid of bad loans by putting borrowers at the risk of losing control over their companies in case of a default.
The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, which has been passed by the Parliament this month, provides for a time-bound resolution of payment disputes and stronger enforcement of awards.
These measures could change buyer behaviour in a manner similar to the impact of the Insolvency and Bankruptcy Code (IBC) on credit discipline,
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