How do I buy a share from the Indian stock market? What's the procedure? What is the minimum money requirement?
Get a PAN Card: PAN or Permanent Account Number is a primary requirement for entering any financial transactions in our country. It is unique 10 digit Alpha-Numeric number assigned to an individual by the Tax Authorities for assessing their tax liabilities. PAN is however required for opening a bank account, investing in mutual funds, filling Income Tax returns etc. Also the first thing you will need to be able to invest in shares in India is a PAN card, so get it first. Get a Broker: You and I cannot directly go the stock exchange and buy or sell stocks/shares like we would buy or sell any other thing. People are authorized to buy and sell on the markets and they are called brokers. Brokers can be individuals or companies and even online agencies that are registered and licensed by SEBI or Securities and Exchanges Board of India, who regulates the share markets. Get a broker, they can be individuals you know and are reliable, or you can approach various companies that are licensed to trade and deal in securities in the markets. If you are comfortable with internet and online stuff, you can even have online broking through companies like ICICI Direct, Sharekhan, Kotak Securities, IndiaBulls etc. (The names given here are just given as examples of well-known companies offering online broker services, they are neither recommendations nor a testimonial to their performance, and please do a research before selecting your broking firm.) Get a Demat and Trading Account: Once you have a broker, whether in form of a person, company or online, you will now need a Demat and Trading account. Demat account will hold the stocks or shares in your name and the same will reflect in your stock portfolio. You cannot hold shares in physical form or store them physically. They have to in Dematerialized state or Demat state. A Demat account does that for you. It will store the shares you buy from the markets through your brokers in your account in your name. The selling will also be from here and it will reflect in your Demat statements that you receive from time to time. You will never have a physical share certificate in your hands; it will be reflected in your Demat Account Statement. The buying and selling of shares you wish to have or want to sell will however require a Trading account. Trading account will be like an intermediary who facilitates the buying and selling. Usually your broker takes care of all this. Whether you approach an individual broker, a broking firm or online agencies, the Demat and Trading accounts will be opened simultaneously as it is one without the other is useless for investing in shares in India. Depository Participant: There is also a Depositary Participant that you need to be aware of. There are two depositories in India: NSDL and CDSL which stands for National Securities Depository Limited and Central Depository Services Limited. These two have their agents in the form of Depository Participants who will provide an account to store the shares you hold. It is not the same as Demat and Trading account as in Demat it shows the number shares you hold and the Trading reflects the buying and selling that has taken place in your account. Depository Participants will hold those shares you bought and release the shares you sold. However, it is usually taken care of by the broker who will also guide you through the Demat, Trading account opening process as well as register with a Depository. But you need to be aware of it none-the-less. UIN if you want to invest BIG: UIN or Unique Identification Number is required in case you trade for Rs. 1,00,000 or more at a single time. If you plan to go BIG in share markets, UIN is needed. Otherwise, for regular investors it is not required. UIN if you want to invest BIG: UIN or Unique Identification Number is required in case you trade for Rs. 1,00,000 or more at a single time. If you plan to go BIG in share markets, UIN is needed. Otherwise, for regular investors it is not required.
Hi, Money can be invested in shares through registered brokerage firms who are registered in the exchanges and regulatory bodies such as NSE, BSE, MCX-SX, SEBI. This gives the surety that your funds are in invested through the trusted member. Check out the list of registered brokerage along with their charges, reviews and rating Page on www.comparebrokerages.in To open an account, you need to have below mention docs. Pan Card, Address Proof Income Proof( required for derivatives) Bank Account You can earn money on this through buying the stock on the companies who are growing year or year basis in terms of market capitalization. as you buy the shares of any company you becomes the part of that organisation. If they grow your money also grow and if they loose, you also loose. To make money is in this case requires the lots of analysis about the stock whats going to happen into it in the coming days/months. More details about you can find on Stock/Share Market Investing - Live BSE/NSE, India Stock Market Recommendations and Tips, Live Stock Markets, Sensex/Nifty, Commodity Market, Investment Portfolio, Financial News, Mutual Funds There is no minimum requirement for the investment you can start even with the Rs 100/- Hope it will help you...:)
**INDIAN STOCK MARKET** Hi, You can buy shares through demat account with the help of broker Open a demat account with broker who is registered with exchanges They will charge their brokerage For opening an account you will need PAN CARD,ADDRESS PROOF and BANK ACCOUNT The procedure is very simple you can just buy any stocks that you are interested in and your trading demat account will be creited with shares and debited with the amount And minimum money required is nothing specific . you can even invest with 100 rupees and buy 1 share . Thanks