SBI: ETF arbitrage opportunity?

Personal finance
1

SBI Nifty ETF

Zerodha price - 104.81

Actual Nav - 94.86

So does it mean I can create units from SBI site and sell it on zerodha at about 12% profit?

Thanks

1 Like
2

I don’t think so. Only SBI appointed market makers can create or destroy ETF Units.

3

Yes, assuming that the price differential remains. But creation lots are Rs 50lakh and above.

4

So to successfully complete the arbitrage we will have to buy shares worth 50 lakhs?

5

Buy shares and deliver it to the market maker. Get ETF units and sell them in the market.