Relevance of Arbitrage in the Indian Derivatives Market

The Futures contract is an agreement between two parties to buy or sell asset at a certain time in the future for agreed price. Since its introduction Indian market, futures are on rise, attracting three types of players i.e., hedgers, speculators & arbitrageurs. These able book their profit only if there any mis-match spot-future relationship. objective this paper find out whether spot-futures relationship holds case Index stock market which results arbitrage opportunity. This also aims finding different factors responsible violation thereby determining extent profits earned by market.