A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.
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The Arbitrage method does help. you can buy and sell stocks from BSE,NSE provided the stocks are already in your Demat account. The penalty occurs only when you do not have the stocks in the account. To be precise while doing intraday. However, The Transfer charges are high when you transfer stocks from one market to other.