Volatility is a different risk class. It has a tremendous potential as every one has to deal with volatility. Anyone who has a portfolio, one who needs to hedge the portfolio for volatility... it could be for institutional or high net-worth individuals. It is a broad base usage of this product, NSE MD & CEO Chitra Ramkrishna said after the launch. The NSE, which constructed India VIX, started disseminating India VIX index in 2009. India VIX indicates the investors perception of the markets volatility in the near term.
The index depicts expected market volatility over the next 30 calendar days. A high India VIX value would suggest that the market expects significant increase in volatility, while a low value indicates the reverse.