1. Offering 1 : Arbitrage Lending Product
Target Segment : Proprietary Arbitrage desk of TM \ Large Constituent clients
Account openings :
F&O Clearing agreement ( if TM) or constituent agreement ( if constituent)
DP account with ISSL DP for holding securities
Bank account with Axis Bank
Loan agreement with IFIN
PCM constituent agreement ( NSE & BSE) with ISSL
Proposed mechanism :
TM empanels as a clearing client in F&O and Cash segment (ILRTL)
A LOC is opened for the client in IFIN
TM shorts (sell) Stock Futures and executes a long ( Buy) position for the equivalent quantity in Cash segment
Full margins paid by TM on F&O open positions
A lower haircut margins with a minimum of 25 – 40 % ( as against 40%) levied on cash positions

2. Offering 1 : Arbitrage Lending Product
Trades in cash segment accepted if counterparty positions exists in F&O.
for eg : The market lot of WIPRO stock futures is 600 shares. Hence if TM sells 1 wipro stock future ( 600 shares), he can buy upto 600 shares in cash market. If the logical holding ( exceeds 600 shares),
If purchase trade exists, such trades would not be accepted
If logical holding is higher, then such excess shares would not be valued
Broader vision for this product :
Currently arbitrage is available between NSE cash and NSE futures
Activation of BSE retail clearing code is under process.
DP Pool Accounts is being opened
Clearing Bank account is being opened
Bank guarantee ( format confusion at BSE end)
After which, BSE- NSE arbitrage can also happen