📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Who can participate as a seller in the TReDS (Trade

    Receivables Discounting System)?
    A MSME sellers only Correct Answer Incorrect Answer
    B Corporate buyers only Correct Answer Incorrect Answer
    C Government Departments and PSUs only Correct Answer Incorrect Answer
    D MSME sellers, corporate and other buyers, and financiers Correct Answer Incorrect Answer
    E Banks and NBFC-Factors only Correct Answer Incorrect Answer

    Solution

    TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs). Sellers, buyers and financiers are the participants on a TReDS platform. Only MSMEs can participate as sellers in TReDS. Corporates, Government Departments, PSUs and any other entity can participate as buyers in TReDS. Banks, NBFC - Factors and other financial institutions as permitted by the Reserve Bank of India (RBI), can participate as financiers in TReDS.

    Practice Next
    More Previous Year Paper Questions
    ask-question