India Broadband Forum

Dragon

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??

Munish_10

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

Dragon

Thanks Munish...

just4kix

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

Dragon

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

smoothvibes

manish are you planing to invest in shares

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

Dragon

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?

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

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.

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

Dragon

Many Thanks for your comments guys, these are really helpful

panchabhut

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.

jakescott88

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!