Thread: One Question - Stock Market

I have a query Regarding Stock Market

Suppose we bought some share through NSE, and we found that, the price for that particular share is trading higher in BSE than NSE, so my question is are we allowed to sell shares in BSE, which we purchased in NSE??

yea it is completly legal to buy frm nse n sell them at bse,this is called arbitrage,,,,,

Thanks Munish...

You buy shares or commodities - where you buy them and where you sell them is not relevant.

You can always find a difference in the price of the share in NSE and BSE..
E.g: In NSE the current price for XYZ share is 112.50 while in BSE its 111.10 per share. Can we just go and buy share in BSE at 111.10 and at the very next moment sell it in NSE at 112.50

Is it possible??

Please forgive me if I am asking a Stupid question

manish are you planing to invest in shares hmy:

do you know its not a good idea to invest in shares till the time you have a good knowledge of share market or someone is there to guide you or trade on your behalf

Originally Posted by smoothvibes

manish are you planing to invest in shares hmy:

do you know its not a good idea to invest in shares till the time you have a good knowledge of share market or someone is there to guide you or trade on your behalf

Thanks for the concern. smoothvibes.

I am already into shares but it not been too long that I have started investing..there are some questions in my mind which I want to clear. That's why I ask questions, may be stupid.

Anyways, Why nobody replied to my question?

Originally Posted by Manish

You can always find a difference in the price of the share in NSE and BSE..
E.g: In NSE the current price for XYZ share is 112.50 while in BSE its 111.10 per share. Can we just go and buy share in BSE at 111.10 and at the very next moment sell it in NSE at 112.50

Is it possible??

Please forgive me if I am asking a Stupid question

Hi manish

Generally it takes T+2 days to share get deposited in ur act. so i think u cant do immediate buying and selling in bse and nse. if select intra option iam not sure u can switch exchanges

Originally Posted by Manish

You can always find a difference in the price of the share in NSE and BSE..
E.g: In NSE the current price for XYZ share is 112.50 while in BSE its 111.10 per share. Can we just go and buy share in BSE at 111.10 and at the very next moment sell it in NSE at 112.50

Is it possible??

Please forgive me if I am asking a Stupid question

It is possible only if you already have similar number of shares as a back-up in your demat account.
Eg. You have 1000 shares of X scrip in your A/c.
You buy 750 shares at 100.50 in NSE
Same day you sell 750 shares at 102 in BSE (may not even be at the same time)
Next day your account would be deducted with the 750 shares you sold
the day after that your account would be credited with the 750 shares you bought.
However, in such a transaction you would have to pay STT & Brokerage as per delivery based transactions.

not sure 100% but u can sell on nse if u bought on BSE.......i guess this will be true for the shares in demat.....meaning u got it delivered to demat. it is not possible thing for intraday (buying selling same day)....u see there is always difference of 5-6 Rs in reliance prices in extremely volitile market on NSE & BSE.....now if they allowed arbitrage for intraday....then i can always have 5-6 Rs from reliance on volatile days 100% . so no for intraday

Originally Posted by hitman007

Hi manish

Generally it takes T+2 days to share get deposited in ur act. so i think u cant do immediate buying and selling in bse and nse. if select intra option iam not sure u can switch exchanges

Originally Posted by panchabhut

It is possible only if you already have similar number of shares as a back-up in your demat account.
Eg. You have 1000 shares of X scrip in your A/c.
You buy 750 shares at 100.50 in NSE
Same day you sell 750 shares at 102 in BSE (may not even be at the same time)
Next day your account would be deducted with the 750 shares you sold
the day after that your account would be credited with the 750 shares you bought.
However, in such a transaction you would have to pay STT & Brokerage as per delivery based transactions.

Originally Posted by Logik

not sure 100% but u can sell on nse if u bought on BSE.......i guess this will be true for the shares in demat.....meaning u got it delivered to demat. it is not possible thing for intraday (buying selling same day)....u see there is always difference of 5-6 Rs in reliance prices in extremely volitile market on NSE & BSE.....now if they allowed arbitrage for intraday....then i can always have 5-6 Rs from reliance on volatile days 100% . so no for intraday

Many Thanks for your comments guys, these are really helpful

Originally Posted by Logik

...now if they allowed arbitrage for intraday....then i can always have 5-6 Rs from reliance on volatile days 100%

thats why I always try to keep some shares in the Demat A/c. Can always effectively use them to earn some intra-day arbitrage.

Thank You for that great post. I really love to read articles that are about the stock market and its current condition. Reading related articles make me more knowledgeable about stock market as I invested my money in the market. I hope to read more from you. Great Job!