Which of the following entities is authorized to set up and operate 'Trade Receivables Discounting System (TReDS)' platforms in India?

💡 Solution & Explanation

The Trade Receivables Discounting System platforms are operated by entities approved by the Reserve Bank of India and promoted in partnership with financial institutions like the Small Industries Development Bank of India to ease liquidity constraints for smaller enterprises. Other apex bodies like NABARD focus primarily on agricultural credit, while SEBI regulates securities markets rather than running discounting exchanges. TReDS significantly reduces working capital delays by allowing MSMEs to auction their trade receivables.