National Stock Exchange (NSE) has launched a new volatility index. This would do the business on a real-time basis and will allow the investors to hedge their portfolios without getting involved with the risks related to this kind of investment.

It is for the first time that India is going to have such an index which will also deal with the details on a real time basis.

It will be called 'India VIX' and is expected to market volatility over the period of next 30 days. The calculation is simple. Higher is the value of India VIX, higher us the volatility and vice versa.

Till now, the figures that appear on the index are in percentage terms, but now the system will shift on a real-time basis.

In a statement given to media, NSE MD and CEO Ravi Narain said, "Once India VIX is available for trading after regulatory approvals, it will give a lot of security to investors and traders, who face uncertainty, because the new product will empower them with better information and foresight."

NSE is now going to apply with SEBI for permission to use the index.