SEBI has proposed changes to India’s municipal bond framework, allowing local bodies to explicitly issue bonds to refinance existing debt. The draft also demands detailed disclosures on lenders, repayment schedules, interest costs and any prior restructurings. In addition, it suggests capping working-capital use at 25% and restricting proceeds from general-purpose spending.
Chief Economic Advisor V Anantha Nageswaran asked large companies to release working capital to MSMEs without delays. He said quicker payments can ease MSMEs’ working-capital crunch and reduce their funding costs, which often climb when invoices stretch. The appeal targets payment timelines as a lever to improve liquidity across the MSME ecosystem.
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Indian exporters are outperforming, but the cash from those wins is arriving late. Extended transit and receivable cycles, worsened by currency volatility, are pressuring working capital. Even with policy interventions, a sizable credit gap remains, limiting firms’ ability to fund longer trade cycles—raising the risk that competitiveness erodes despite strong export momentum.
India has launched Emergency Credit Line Guarantee Scheme 5.0 to shield MSMEs hit by the Iran war fallout. The programme offers eligible businesses a collateral-free working capital top-up of up to 20% of their prior year peak utilisation, backed by a 100% government guarantee for smaller MSMEs. Loans come with a one-year principal moratorium and five-year repayment tenure.
Amba Auto Sales and Services is set to list today after a Rs 65.1 crore IPO priced at Rs 135. Grey market signals point to a flat debut, even as subscriptions came in mixed, with institutional investors showing greater interest than retail. The company, an authorised dealer for Bajaj Auto and LG, plans to use proceeds for working capital and expansion.
ClayCo has raised nearly Rs 35 crore in a new funding round, saying the money will go toward accelerating product development, expanding into new categories, and strengthening working capital. The company framed the raise as a push to scale faster and improve operational readiness ahead of broader market expansion.
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