What Is The Factoring Regulation Amendment Bill 2021 Law Insi Published on: august 13,2021 11:25 ist. by neha choudhary. introduction. recently, with certain necessary amendments for the smooth working of the banking provisions, the factoring regulation act, 2011 had sought to be amended with the factoring regulation amendment bill passed in 2021 which was tabled the previous year and developed this year with the recommendations of the u.k sinha. After that, the bill was referred to the standing committee of finance on september 25, 2020, and further tabled by the committee before the lok sabha on february 3, 2021. some recommendations of the committee have been accepted by the government. accordingly, one amendment will be made to the bill.
127th Constitutional Amendment Bill 2021 A Rectification Or Misinterpretation L Recently, rajya sabha has passed the factoring regulation (amendment) bill, 2021 to bring changes in the legislation aimed at helping the micro, small and medium enterprises (msme) sector. it has incorporated many suggestions from the uk sinha committee. factoring business is a business where an entity acquires the receivables of another entity. Currently, seven non bank finance companies called nbfc factors do the majority of the factoring through the principal business condition. under the factoring regulation act, 2011, factoring business is a business where an entity (referred as factor) acquires the receivables of another entity (referred as assignor) for an amount. receivables is. Relaxation to nbfcs’ factoring threshold: the bill seeks to amend the factoring regulation act, 2011 to widen the scope of entities which can engage in factoring business. the current law which gave the reserve bank of india authority to allow non bank finance companies to remain in factoring business only if it was their principal business. The ministry of law and justice, vide notification dated 9 th august 2021, notified amendment to the factoring regulation act, 2011. the amendment is named as ‘the factoring regulation (amendment) act, 2021’ which received presidential assent on 7 th august 2021. notably, the amendments are effective from 23 rd august 2021.
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