You have recently learnt about stock or share market in our blog. It is a place where you can make big money at a short time by investing money. however, not everyone can make money here. You have to master various skills, discipline, patience and deep knowledge of the market to get succeded. And in order to start your journey as an investor, let’s talk about how you can invest in the share market as a beginner.
Get a Pan or Aadhar Card
Aadhar or Pan card is must when you try to start investing in India. PAN is a unique 1o character alpha-numeric identifier. PAN card is mandatory everywhere when you opt for financial transactions such as opening a bank account, investing in share market or mutual funds etc. Aadhar is a unique identification identity which is necessary to open a Demat account in India. In order to open a Demat account, Know your Customer (KYC) formalities have to be done and without Aadhar Card no one can do that.
Get a Bank Account
Without a bank account, you can’t invest in the share market in India. So, as a beginner to invest in the share market, you have to open a bank account first. After opening a bank account, you have to link it with your trading account so that you can invest money in the share market directly from your bank account.
Get a Broker
You as a beginner in share market or no one can just go and buy some share from share market. Only some people are authorised and have permission to buy or sell shares of the stock market and these people are called brokers. The broker can be an individual person, they can be companies or even an online agency. So, as a beginner to invest in the share market, you have to get a broker you know and trust to start investing in the share market. You can even opt for online broking companies like ICICI Direct, Sharekhan, Kotak Securities, IndiaBulls etc. if you are comfortable and know a little about the internet.
Open a Demat Account
After getting a broker, you need to open a Demat account, in order to invest in the share market in India. This is the account where you will hold your own stocks that you have purchased. The account will show them in your name as you can’t hold shares in physical forms.
Open a Trading Account
After opening a trading account, you must also open a Trading Account to invest in share market in India as a beginner. A Trading Account is a medium through which you can buy and sell your shares. When you get a broker or an online broking agency, they will open a trading as well as a Demat account as both are essential to invest in the share market of India.
There is also a Depositary Participant that you should know about. There are two type depositories in India and they are NSDL and CDSL. The first one stands for National Securities Depository Limited and the second one stands for Central Depository Services Limited. These two have their agents who will provide an account to store the shares you usually hold. It is not the same as Demat and Trading account and Depository Participants will hold those shares you bought. It will also release the shares you sold. However, a broker will take care who will also guide you through the Demat, Trading account opening process as well as register with a Depository.
Get UIN to Invest Big
As a beginner in the share market, you usually don’t have to get a Unique Identification number. It is a must for those investors who usually trade for at least 100k or more. If your plan is to invest a huge chunk of money, you can get UIN, otherwise, it is ok not to get it.
Buying and Selling
For buying or selling shares, you need to inform your broker about which share you want to buy or sell at the price you want. In case of an online broker too, you can contact them through their website or customer care number and when the share reaches that price, the transaction will be made on your behalf.
Now, you finally come to know what are the requirements to invest in the share market in India. In order to get succss in share market, know your investment requirements and take decisions accordingly. You should also monitor your portfolio regularly, always buy stocks in the mix and don’t keep all eggs in one basket.
So, most importantly if you have learnt something new related to share market investment, don’t forget to share this article with friends and with others. You can even bookmark our website to visit directly to the website without wasting any time by typing.