Yes, you can carry out arbitrage trades between two exchanges due to the
interoperability of exchanges.
Example Scenario
Assume you hold Reliance shares in your demat account and notice:
- Reliance trades at ₹2604 on BSE
- Reliance trades at ₹2600 on NSE
Your arbitrage strategy:
- Sell your Reliance shares on BSE at ₹2604
- Buy the same quantity of Reliance shares on NSE at ₹2600
- Earn ₹4 profit per share (excluding transaction costs)