How to start trading in stock market in India
The lure of earning big amount of money has always attracted a large number of investors to invest in the Indian stock market. Over the years, this sector has witnessed a major growth, eventually growing to become one of the finest investment avenues in India.
However, investing in this form of market is considered a risk too, but this hasn’t stopped investors from trading in this market. This being the most sort investment option in India, here is a guide on how to start share broking in India.
An investor needs to do the following things to get started with this business in India:
Get a PAN Card: One of the most essential requirement to get started with the stock market business in India is availing a PAN Card. Permanent account number or PAN card number is a code which acts as an identification for Indians, especially those who pay income tax. It is a 10 digit alpha-numeric number issued to an individual by the tax authorities of India. A PAN card is required for opening a bank account, investing in mutual funds, or stock trading in India.
Get a broker or stock broking company: One cannot directly start trading in stock market without having an idea about the functioning of the market. For this purpose, several companies and persons are authorised as stock brokers to help you carry the buying and selling of stocks in the stock market.
Open a bank account: A bank account is extremely important for carrying out trading activities.
Open a Demat account: One of the easiest way to keep a tab on all your trading process in the stock market is the Demat account. Earlier, the trading process was carried out wherein traders had to exchange shares in the physical format in order to trade. However, with advancement in technology, it is now possible to trade shares in electronic format.