NSE gets nod for futures trading on volatility index

Reuters Market Eye - The Securities and Exchange Board of India (SEBI) has allowed National Stock Exchange Ltd to launch trading of futures contracts on its VIX index, which measures the cost of protection via options and is widely considered by investors as a fear gauge.

"There was a request from NSE for launching futures on the volatility index... SEBI has given its go ahead to NSE to launch that," said U.K. Sinha, chairman India's market regulator, at an NSE event in Mumbai on Tuesday to launch trading of bond futures.

(Reporting by Abhishek Vishnoi)