(a) Buy Depository Receipt(DR).
(b) Sell local stock in India in cash market or futures market.
(c) Convert shares from DR to local.
(d) Deliver shares to stock exchange in India.
(e) Deposit proceeds in Indian bank account.
(f) Repatriate funds.
(g) Repeat process.
2. The Costs involved in the arbitrage opportunity is as listed below:
(a) Foreign brokerage.
(b) Local brokerage.
(c) Custodian charge for conversion (local and global).
(d) Back charges for transfer.
(e) Fund manager charge.
3. Due to complexities in procedure it is better to leave these hassles to a good arbitrage fund.
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