“The first product—the mini contracts in equity indices is already in the market. The second one—the long-dated futures would be introduced in the next 10 days,” Mr Damodaran said here on Saturday.

“The third one that I am looking forward to is the volatility index, which might take a month, (it is) something on which the stock exchanges are working on at this point of time,” he told reporters on the sidelines of a seminar on corporate governance, organised by the Institute of Chartered Accountants of India.

The Sebi Chairman said that at present the volatility index was present only in a few mature markets. “We are talking about a market that has high levels of volatility. Now we are offering you a product which says if you understand what volatility is and have a take on volatility, here is a product where you can express by way of investment in terms of what you understand of volatility,” he added.

RBI clearance

“It is a very good product. There are some products where we have to consult the RBI and we are in that process. There are now seven products of which two to three need clearance from the RBI,” he said. The board of the regulatory authority, cleared seven new products during its meeting held here on November 14.

Sebi had proposed to introduce mini-contracts in equity indices, options contracts with longer life/tenure, F&O (futures and options) contracts on volatility index, options on futures, F&O contracts on bond index, exchange-traded currency (foreign exchange) F&O contracts and exchange-traded products involving different strategies.

He added there would be no dilution of Clause 49 (of the listing agreement) until an amendment is passed in Parliament. “I see no essential contradiction with what the J J Irani Committee has recommended for the Company Law Bill.  But should the Indian Parliament say everyone should have a floor of one-third, Clause 49 will stand amended to the extent that such amendment is contemplated by the statute of Parliament. But till that happens there would be no dilution of Clause 49 because of a recommendation, that people see as a difference between what we and what the company law draft says,” he explained adding that the clause was put in place after five years of consultation.

Further, on regulation of markets, Mr Damodaran said, “the debate that the world is seeing is whether you should have rules-based regulation or principles-based regulation.”

“I believe that the Indian regulation today is being acknowledged at least among the community of regulators worldwide,” Mr Damodaran added.