options and options on shares with restricted transferability. Most listed options on other instruments
are also US-style options, but a number of European style options have been introduced in recent
years, particularly on stock indices and currencies.
AMFI- Association of Mutual Funds in India
A firm / company / an individual who is engaged either on his own behalf or on behalf of any other
firm or organization that is regularly publishing securities recommendations based on research either
through print media and /or electronic media.
A rise in the price of a security or in the value of one currency in terms of another.
A person duly registered by the SEBI Board under the Securities Lending Scheme , 1997 through
whom the lender of securities will deposit the securities and the borrower will borrow the securities.
(1) Technically, arbitrage consists of purchasing a commodity or security in one market for immediate
sale in another market (deterministic arbitrage).
(2)Popular usage has expanded the meaning of the term to include any activity which attempts to
buy a relatively underpriced item and sell a similar, relatively overpriced item, expecting to profit
when the prices resume a more appropriate theoretical or historical relationship (statistical
(3) In trading options, convertible securities, and futures, arbitrage techniques can be applied whenever
a strategy involves buying and selling packages of related instruments.
(4)Risk arbitrage applies the principles of risk offset to mergers and other major corporate
developments. The risk offsetting position(s) do not insulate the investor from certain event risks
(such as termination of a merger agreement on the risk of completion of a transaction within a
certain time) so that the arbitrage is incomplete.
(5) Tax arbitrage transactions are undertaken to share the benefit of differential tax rates or
circumstances of two or more parties to a transaction.
(6) Regulatory arbitrage transactions are designed to provide indirect access to a risk management
market where one party is denied direct access by law or regulation.
(7)Swap driven arbitrage transactions are motivated by the comparative advantages which swap
counter-parties enjoy in different debt and currency markets. One counterparty may borrow at a
relatively lower rate in the intermediate or long term United States dollar market, while the other
may have a comparative advantage in floating rate sterling.
An alternative dispute resolution mechanism provided by a stock exchange for resolving disputes
between the trading members and their clients in respect of trades done on the exchange.