To invest in the stock market or share market in India. You need to follow some guidelines and rules of the Indian market government.
Steps to Invest in the Stock market
- You Need Eligibility Criteria
- Choosing Best Partner of Share Market
- Planning the correct Budget for your Stocks
- Be Careful about your future and having a strong mind on that.
- You Need a Demat Account
- Last and final choosing correct stocks weather in BSE or NSE
Get a PAN or Aadhar card
A PAN card or an Aadhar card is a mandatory requirement for investing in India. It is required for KYC (know your client) procedure while opening an account with the market regulator, the Securities and Exchange Board of India (Sebi). Besides this, the government has mandated a six-month bank statement along with a canceled cheque, under the new rules to open a Demat account.
Get a broker
A person cannot go directly to the stock market to buy or sell shares. Buying and selling of stocks have to be done through brokers. They are individuals, companies, or agencies registered with and authorized by Sebi to trade on the stock exchanges. Brokers will charge a brokerage fee or brokerage for the assistance they provide.
Get a Demat account
Once you have a broker, the next step is to open a Demat and trading account. This account will hold the stocks that you have purchased and will reflect them in your name. Shares cannot be held in physical form and they form part of the dematerialized or Demat account.
Buying and Selling
In order to buy or sell shares, one needs to inform the broker of the quantity to be bought or sold all.
Any amount from which you can buy a stock is decent enough to start trading, no minimum money to start trading in the stock market required. Here is a list of a few popular companies whose stock prices are less than Rs 100 (at the time of writing this post). You can easily invest in these companies.