How to buy shares online in India?


How to buy shares online in India? - You might have heard that stock investment can make you rich easily, but with all the ease, the amount of high risks stays the same.

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You might have heard that stock investment can make you rich easily, but with all the ease, the amount of high risks stays the same. Which is why, you must know the financial needs, wants and risk-taking capacity before investing into stock market. Once the research is ready to implement upon, you need to pick suitable companies to invest and buy the shares. Picking a company comes with anticipated profits and fewer loses instead when you choose for any random shares.

The prospect of investing in stocks may seem daunting to someone who has only read about it in newspapers, heard from friends or watched about it on any TV shows or movies. Despite the fear, there are lakhs of individual Demat account opening every year for investing in stocks. It is only because of the high amount of returns that online market trading5 offers to you.

As an investor, there are a wide range of assets that one can invest in such as equity, gold, properties, mutual funds. But, it has been trusted by people that share market offers you more return than any other investments out there.

In present times, being digitally well-versed is essential. While everything is digital, buying shares online has also become easy and convenient.

Here are the steps to buy shares online in India.

1) Get a Pan Card:-

Getting a (Permanent account Number) PAN card is the first step to trade in stock market. You cannot buy shares if you don’t have a PAN card.

As per the norms of government, an individual needs to furnish his/her PAN to execute financial transactions in India.

Which is why, you must apply for a PAN Card if you don’t have one.

2) Open Demat and trading accounts:-

These are the accounts that you will mandatorily require to buy stocks online. The Demat account assists to hold all the securities you possess in a particular form, while the trading account facilitates buying and selling of stocks. Store the unique Demat and trading account numbers, which you will need to quote while buying equity shares online and Online equity trading.

3) Select a Stock Broker:-

You can invest in stocks only through SEBI registered brokers and investment platforms. These intermediaries levy a brokerage charge to facilitate the service. It is either a flat fee or it’s charged on percentage basis of the total transaction value.

Also consider the range of securities alongside stocks a broker offers before registering a value.

4) Link Bank account with trading account:-

When you place an order to buy stocks through the trading account, the payment for it is processed via your bank account. Hence, it is advised to link all three accounts- Demat, trading and savings.

5) Acquire UID:-

You will need to get a Unique Identification Number (UID) if your transaction value exceeds RS. 1 lakh. SEBI mandates this for all the market participants, including investors.

Once you’ve fulfilled all the necessary proceedings, you’re all set to buy shares online.

Thus, for purchasing shares online, you have to follow the SEBI mandated rules. You must also remember to choose a trusted financial partner for trading in stock markets.

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