SBI: ETF arbitrage opportunity?


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?


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

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

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

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