How To Invest In Indian Share Market: A Beginner’s Guide

How To Invest In Indian Share Market?

Share market or stock market is a platform, where shares of different companies are being traded. Like the other countries India has also a share market. All the buying and selling of stocks takes place through the stock exchanges.

India has two major stock exchanges for share trading, which are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Most of the trades take place through both stock exchanges.

Things You Need For Share Trading In India

So in order to invest in the Indian share market you need certain things.

  1. A PAN Card
  2. A Stock Broker
  3. Demat And Trading Account
  4. Bank Account
  5. Some Money For Investment or Trading
  6. Gain Market Related Knowledge
  7. Buying And Selling Shares

1. PAN Card

PAN Card

In order to invest in the Indian share market, the first thing you need to do is getting a PAN Card. Without PAN card you will not be to Invest in the Indian Stock market.

The PAN card comprises the permanent account number (PAN), issued by the Income Tax Department of India. You can apply for the PAN card from the NSDL website.

2. Stock Broker

After getting a PAN card, you need to find a suitable stock broker for you. One can not trade directly through the exchanges, only certain peoples are allowed to trade in the stock exchanges, and those are stock brokers.

There are many stockbrokers out there in the market. Some of them are full service broker and some of them are discount brokers. Discount brokers offer very low brokerage model, most of them charges Rs 20 per order.

The full-service brokers have physical branches in most of the cities and you will get a dedicated dealer (who will buy or sell shares for you), free research advisory call on stocks, and other services, but you have to pay higher brokerages.

So you have to choose between the full service or discount brokers according to your needs and comforts.

3. Open A Trading And Demat Account

The stockbroker will provide you the trading and Demat account. The shares you buy will be deposited in the Demat account and you will buy those shares using your trading account.

While you buy or sell a share you have to pay a certain amount to your broker, depending upon their charges. Trading and Demat accounts are necessary to invest in the Indian share market.

Open A Trading And Demat Account

You can read the article if you want to learn the basics of stock trading.

In order to open a Trading and Demat account, you need certain document like:

  • PAN Card
  • Aadhar Card (As address proof)
  • Bank Statement (6 months)
  • Bank Account Details ( For Fund Transfer)
  • E-sign using Aadhar number (Mobile number Should Be registered for online processing)
  • IPV (In-person verification)

Bank Account

To invest in the Indian share market, you need a bank account to transfer funds to your trading account and withdraw funds from your trading account. Without a bank account it is impossible to invest in the Indian stock market.

Money For Investment

You need to allocate some money for the investment purpose, that is depending upon your income and potential. If, you’re new to share trading then allocate a small amount of money, gradually learn and increase your investments.

As you all know investing in a share market without proper knowledge is quite risky and there is a chance of losing all your money, if you trade haphazardly.

6. Gain Share Market Related Knowledge

Before buying and selling shares you need to know certain things about the share market and you should know how it works. So in order to gain stock market-related knowledge please check our knowledge center section. we regularly update that and you will learn a lot from that.

7. Buying And Selling Shares

It is the last step of investing in the Indian share market. In order to invest in shares, you need to buy them. You can start buying from 1 quantity to as much as you want, according to your monetary potential.

If you’re new to the stock market our suggestion is to start buying from the blue-chip shares (Big companies). Those shares have very low volatility.


The Indian share market is a quite mature market with lots of market percipient and it is quite safe to invest in. The Indian share market and the exchanges are regulated by SEBI (Securities and Exchange Board of India) a government organization to counter frauds.

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