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. 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 and
trading accounts opening every year for investing in stocks. It is only because
of the high amount of returns that share’s
online trading 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.
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.