Prajna Capital - An Investment Guide

New Indices The New Year has set in and is bringing with it a lot of new things. Amongst many events in the financial sector - like the Reliance Power IPO and the market crash - 2008 may well see the launch of two new indices. They will not be sector indices like the recent Power Sector index. We are talking of a Volatility Index and the Dharma Index . Volatility Index The Volatility Index will be launched by the Bombay and National Stock Exchanges ( NSE ). The exchanges have been given a green signal by the market regulator, Securities & Exchange Board of India ( SEBI ), to go ahead and launch the index. At the same time, SEBI has also given the exchanges a free hand to decide whether they want to adopt a global model for this index or develop their own model. The Volatility Index, along with Futures and Options on it, was a recommendation by the SEBI-appointed Derivatives Market Review Committee (DMRC). The Volatility Index will measure market expectations of near-term volatilit...