In this article we are going to cover on how to invest in share market online in India also how to invest in share market in India without brokers.
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, sometimes the government has mandated six-month bank statement along with a cancelled cheque, under the new rules to open a demat account. A person cannot go directly to the stock market to buy or sell shares. Buying and selling of stocks has to be done through brokers. They are individuals, companies or agencies registered with and authorized by SEBI (Security Exchange Board of India) to trade on the stock exchanges.
In order to be able to invest in share market in India, the following procedures need to be followed.
1. Selecting a Broker for your Investment
You cant buy and sell any share registered on the exchange(NSE/BSE) on your own, you can do it only with the help of broker.
2. Opening a D-Mat account:
The D-Mat account can be opened either in any bank approved by the NSDL/CSDL Depoitory participants reognisd by SEBI or at the Brokers.
Just like opening a bank account you can, open your D-Mart account in either of the stock broker with your PAN card, Aadhar Card details, photograph.
3. Beside opening the Demat account, you need to select your broker that charge less brokerage commission.
4. You can either invest (For Long Term) in the stock market, or trade(Short term) .
This is a procedure to enter the stock marke, after entering the market you find distinct type of Markets such as :
a. Equity Market
b. Future & Options (Derivative Market)
c. Commodity Market
d. Forex Market
Now depending upo your interest and expertisation you can invest in either of the market of all the market.
Further you need to note that, not all brokers allow trade in all segment so, it is required on your part to analyze the market that you want to trade in and the broker having authority and access to that market.
5. Start trading:
· 1.Understand your investment requirement and take decisions accordingly.
· 2. Decide your goal and plan the investment strategy accordingly. Find out the stocks that are likely to align with your investment.
· 3. Enter the market at the right time. Try and buy the share at its lowest cost especially when the market is weak and sell when it rallies. This would yield higher returns.
· 4. While trading you should communicate the requirements to your broker. Ensure that the broker does accordingly and cross-check to avoid any errors.
· 5. Monitor your portfolio regularly. Instead of keeping all eggs in one basket, have the best possible mix of stocks. It helps to avoid unnecessary risk.
Some of the popular Trading Markets are :
For Equity: NSE & BSE
For Commodity: MCX
Apart this, if you want to learn on how to earn money online from home in india without any investment, do check here.