The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026

What does this law do?

This law amends the Micro, Small and Medium Enterprises Development Act, 2006 to improve support for small businesses by creating digital registration platforms, requiring public sector entities to use a Trade Receivables Discounting System for payments, and establishing dispute resolution mechanisms.

Who it affects

Micro, small, and medium enterprises (MSMEs), Central and State Governments, Central Public Sector Enterprises, and State Public Sector Enterprises

Key provisions

• Creates a national digital platform for free registration of MSMEs
• Requires Central and State Public Sector Enterprises to route payments through a Trade Receivables Discounting System
• Establishes Micro and Small Enterprises Facilitation Councils for dispute resolution
• Sets time limits for mediation (90 days) and awards (90 days)
• Requires courts to enforce mediated settlements as debts under Insolvency and Bankruptcy Code, 2016
• Mandates disclosure of invoice details by public entities

Points worth noting

• This is an amendment to the Micro, Small and Medium Enterprises Development Act, 2006
• Creates new sections 15A, 18A, and 22A
• Repeals no older law (not stated in text)