Introduction
Today's legal and governance highlights focus on the statutory consolidation of MSME support systems, the regulatory framework for internship schemes under the Ministry of Corporate Affairs, and pension reforms initiated by PFRDA. The analysis centers on NITI Aayog's report on scheme convergence, the Prime Minister's Internship Scheme guidelines, and the MS Sahoo Committee's mandate for the National Pension System.
1. Economic Law & Policy: NITI Aayog on MSME Convergence
NITI Aayog has released a strategic roadmap for converging over 18 MSME schemes to streamline governance and improve statutory compliance.
A. Statutory Definition & Classification
MSMED Act, 2006: The sector is governed by the Micro, Small and Medium Enterprises Development Act, 2006.
Revised Classification (2025): The analysis notes a revised classification effective from April 1, 2025 (likely adjusting investment/turnover limits for inflation), which forms the legal basis for eligibility.
B. Formalization Mechanism
Udyam Portal: A statutory registration requirement for availing benefits under the MSMED Act.
Udyam Assist Platform (UAP): Legally integrates "Informal Micro Enterprises" (IMEs) into the formal ambit, allowing them priority sector lending benefits without full GST registration in some cases.
C. Convergence & Governance
Process Convergence: The report suggests integrating the statutory processes of various ministries (Textiles, Rural Development) to avoid overlap.
Unified Portal: Proposes an AI-powered platform to handle compliance and finance, reducing the "Regulatory Cholesterol" faced by small businesses.
2. Corporate Law & Governance: Prime Minister's Internship Scheme (PMIS)
The analysis of the PMIS highlights implementation challenges and regulatory gaps in India's skill ecosystem.
A. Regulatory Framework
Ministry: Ministry of Corporate Affairs (MCA).
Company Law Link: The scheme targets "Top 500 Companies," likely defined by CSR applicability under Section 135 of the Companies Act, 2013 (based on Net Worth, Turnover, or Profit).
Internship vs. Employment: The scheme creates a new category of "Interns" distinct from "Apprentices" under the Apprentices Act, 1961. Unlike apprenticeships which are statutory obligations for certain industries, PMIS participation appears voluntary but incentivized.
B. Eligibility & Exclusions
Criteria: Defines strict eligibility (Age 21-24, income <8 Lakhs) and exclusions (IIT/IIM graduates, CA/CS professionals), creating a specific legal beneficiary class aimed at "middle-of-the-pyramid" youth.
3. Pension Law: MS Sahoo Committee for NPS
The Pension Fund Regulatory and Development Authority (PFRDA) has constituted a high-level committee to design "Assured Payouts."
A. Statutory Body: PFRDA
Enabling Act: Established under the Pension Fund Regulatory and Development Authority Act, 2013.
Mandate: To regulate the National Pension System (NPS) and protect subscriber interests.
B. Regulatory Reform: Assured Returns
Shift in Liability: Currently, NPS is a "Defined Contribution" scheme (market risk borne by subscriber). The committee, led by MS Sahoo (former IBBI Chair), aims to frame regulations for "Market-based Guarantees." This would legally permit pension funds to offer "minimum assured return" products, bridging the gap between OPS (Defined Benefit) and NPS.
NPS Vatsalya: New guidelines issued for this minor-focused pension scheme, expanding the statutory scope of PFRDA to cover children.
Key Legal Takeaways
Statute: MSMED Act, 2006 (Defines Investment/Turnover criteria).
Policy Report: NITI Aayog on MSME Convergence (Proposes unified statutory portal).
Statutory Body: PFRDA (Constituted under PFRDA Act, 2013).
Committee: MS Sahoo Committee (To frame regulations for Assured NPS Payouts).
Scheme Governance: PM Internship Scheme (Administered by Ministry of Corporate Affairs).
Digital Public Infrastructure: Udyam Assist Platform (Statutory interface for informal enterprises).
Frequently Asked Questions (FAQs)
Q1: Under which Act is the MSME sector classified in India?
Answer: The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. It defines enterprises based on Investment in Plant & Machinery and Annual Turnover.
Q2: Is the Prime Minister's Internship Scheme governed by the Apprentices Act, 1961?
Answer: No. The PMIS is a separate Central Sector Scheme under the Ministry of Corporate Affairs. It is distinct from the National Apprenticeship Promotion Scheme (NAPS) which operates under the Apprentices Act.
Q3: Which statutory body regulates the National Pension System (NPS)?
Answer: The Pension Fund Regulatory and Development Authority (PFRDA), established under the PFRDA Act, 2013.
Q4: What is the primary objective of the MS Sahoo Committee constituted by PFRDA?
Answer: To design a regulatory framework for "Assured Payouts" or market-based guarantees under the NPS, moving towards a model that offers some income certainty post-retirement.
Q5: What is the 'Udyam Assist Platform' (UAP)?
Answer: It is a digital platform launched by the government to facilitate the formalization of Informal Micro Enterprises (IMEs). It allows them to get a registration certificate without mandatory GSTIN, enabling access to Priority Sector Lending.