Arbitrage, buying equity on NSE and selling it on BSE, is it possible?

@nithin Say i have purchase 100 Reliance in NSE on monday at 1000. On tuesday price in NSE is 1025 and on bse 1030. Can i sell that 100 reliance shares in BSE on Tuseday at 1030.

Pay Out of Monday purchase will be completed by Wednesday evening whereas Pay In of Tuesday Sales will be performed on Thursday Morning.

Awaited for your reply

Just a quick tip. You can select multiple positions and exit them all at once on the Kite positions page. Just use the checkboxes on the left. :slight_smile:

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Thanks I was scratching my head for too long to understand this intraday trading

I think Here the Price Difference is ₹0. That’s Why We’re Break-even.

@nithin Will the interoperability of Clearing corporation remove the roadblock for delivery based arbitrage as the obligations will cancel out at T day when clearing house considers receivables ?

Yep absolutely. But once this happens, I don’t think those arbitrage opportunities will be even available anymore.

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@nithin Has the interoperability of Clearing corporation been implemented? If I buy a stock on NSE and sell on BSE on the same day, will it now be considered an intraday trade?

Most trading platforms are still not live in terms of interoperability. It will maybe take another 4 to 6 months before this can happen.

Thanks @nithin . Just to be clear, if I currently sell a stock that I hold in my demat account on NSE and buy it on the same day on BSE, the shares will still be transferred out of my demat account to the pool account on T+1 day and I will receive the shares I bought credited into by demat account on T+2, correct?

I’m trying to do tax loss harvesting by selling my holding on NSE and buying it back on BSE immediately on the same day. So I just wanted to be sure if this will be a delivery based transaction and not an intraday one.

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Ah no, in the backend it is interoperable, not on the trading platform.

What this means is that you can’t do CNC Buy on NSE and try to sell the same as CNC sell on BSE, the platform won’t allow you to do it as it isn’t ready for interoperability.

But if you sell a current stock holding on NSE and buy it on BSE, shares won’t get debited and credited to your demat. It will be intraday. You will have to sell, wait for a day and then buy it back again.

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That makes sense. Thanks for the quick clarification.

@nithin Just to clarify …we can’t do arbitrage trading unless we don’t have stocks in demat ? can’t we do this on intraday basis between two exchanges?

Yeah, for now you can’t.

But SEBI has introduced interoperability between exchanges last year.

While the backoffice of all brokers can handle interop, none of the trading front ends (brokers) are ready for it as of now. Whenever interop is ready on the trading platform, you can buy/sell between exchanges if the same scrip/contract is trading on either of them.

Interop is a complex change on the risk management systems of brokers, and hence it has taken this much time for implementation. We will probably be ready in 6 months time.


@nithin any tentative timeline to support interoperability at front end?

No timeline.

@siva @ShubhS9 I purchase 100 qty of ABC on NSE and Sold it on next on BSE, this is BTST with interoperability need to understand how this transaction would be settled.

Nothing changes, it’ll be normal BTST trade only.

Thanks for the quick response @ShubhS9. One quick quary. Is interoperability for Intraday is live? Can I buy a stock in NSE under CNC and sell it on the same day in BSE under BSE?

This is currently not possible.

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Yes brother it is possible.

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