'Mid-Size Enterprises Neglected Under MSME Ministry'

The organisation also suggested changes in the Companies Act saying some sections of the Companies Act, 2013, threaten medium-sized enterprises and discourage them from registering as a company.

It has suggested making Companies Act simple for small businesses so that it is affordable to comply.

"The 'Small Companies' provisions in the Act provide some relief but the eligibility limit has been kept so low that even 'small' MSMEs cannot utilise the provision," it said.

Further, FISME also recommended that limited and listed companies, and limited but not listed companies should be classified under different regulatory frameworks.

"Put 'Limited and listed' & 'Limited but not listed' companies' in different regulatory buckets. The regulatory compliance for the non-listed companies (e.g. requirement of independent directors, women directors etc ), has to be eased substantially, as concerns for public shareholders' interest are not present in these closely held companies," it said.

Among other suggestions, it also said that the criteria for appointment of Independent Director's urgently need modifications to provide more flexibility for compliance of mid cap and small cap companies.

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