NSE, IBBI ink pact for research collaboration

Leading stock exchange NSE on Friday said it has joined hands with the Insolvency and Bankruptcy Board of India (IBBI) for research collaboration.

The objective of the collaboration is to create a research ecosystem in the area of insolvency and bankruptcy in the country, the exchange said in a statement.

It further said that an efficient insolvency and bankruptcy resolution system enables timely resolution of financial stress, balances interests of all stakeholders, promotes entrepreneurship and increases availability of credit at optimal costs. This, in turn, improves growth prospects and builds institutional strength in an economy.

IBBI is a unique regulator, which regulates insolvency professionals as well as insolvency processes.

Under this collaboration, NSE and IBBI will focus on enhancing the existing research efforts in the areas related to insolvency and bankruptcy in India, promoting studies that explore interlinkages between the development of the insolvency process, financial markets and economy, the statement noted.

Also, they will analyse the effectiveness of insolvency laws and practices across the world and fostering evidence-based policy recommendations to strengthen the insolvency framework in India.

IBBI Whole-time Member Sudhaker Shukla said that in an evolving area such as insolvency and bankruptcy, there is a dire need to promote credible research on the best practices and outcomes.

To this effect, IBBI has collated a dynamic data set relating to processes and outcomes under the IBC and encouraged evidence-based research in the insolvency space, he said.

"To further this research, our endeavour is to explore new avenues and possibilities in the sphere of research collaboration. In this context, the partnership between IBBI and NSE will go a long way in plugging the research void in such an important area of distressed assets and its resolution," he added.

Vikram Limaye, MD and CEO, NSE, said the exchange has always been at the forefront in encouraging research in relevant and emerging issues that are important for effective policy making and promote development of markets.