The Centre has promulgated an ordinance amending the Insolvency and Bankruptcy Code to introduce pre-packaged insolvency for MSMEs. Under the change, a firm prepares a restructuring plan in coordination with creditors before formal insolvency proceedings start. The goal is to reduce delays and overall costs by front-loading negotiations and speeding up resolution.
The government’s push to expand TReDS aims to unlock faster invoice financing for MSMEs, but experts warn that RBI’s onboarding easing may not solve the core issue. Credit ratings remain a key requirement, creating uncertainty about eligibility and slowing participation. For many smaller firms, this means the promised liquidity access still feels out of reach.
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Devesh Sachdev has joined credit platform GLAAS as a co-founder, investing USD 5 million. The startup targets embedded credit for MSMEs across India, building on Sachdev’s earlier Fusion Finance experience. GLAAS is also strengthening its NBFC, Gromor Finance, and expanding its partner network to scale lending through existing business ecosystems.
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