Where to buy and sell Shares ⇾ The Stock Market is the place where the buying and selling of shares takes place. It serves as the marketplace where investors can purchase and trade shares of publicly listed companies.
How to do it ⇾ In this digital era, the share market has become fully electronic and dematerialized, eliminating the need for physical share certificates (papers of shares that we purchase). We no longer need to go directly to the BSE (Bombay Stock Exchange) or NSE (National Stock Exchange) to buy or sell shares. Instead, we can do these transactions conveniently from our mobile phones, thanks to advancements in trading platforms and technology. SEBI (Securities & Exchange Board of India) is the Stock market regulating agency of the Govt. of India. BSE & NSE work under SEBI’s strict regulations.
Before reading further, 👇 please read the articles about
SEBI (Securities & Exchange Board of India)
How to Buy and Sell Shares ?
In India, to buy and sell shares, we need to open a De-mat account with a SEBI registered broker. A Demat account is a dematerialized account, meaning the paperless online account to keep record of our shares. The Demat account keeps our shares, bonds in an electronic format. It functions like a bank, but it is the bank which keeps our shares, bonds and mutual funds units.
A broker in the stock market is like a middleman between investors and the stock exchanges. The broker in the share market is a registered intermediary under SEBI. We need to open a Demat account with any registered broker to trade shares. Broker on behalf of investors executes buying & selling of securities.
What Documents are needed –
To open a Demat account in India, you need following documents 👇
- In India, you need to be at least 18 years old to do trade of shares (buying & selling of shares).
- You need a bank account in a scheduled bank in India. That bank account should be linked to your Aadhaar card (आधार कार्ड).
- Bank passbook and Bank account statement. IFSC code, MICR codes are needed while opening Demat account.
- One must have a PAN card (Permanent Account Number) to open a De-mat Account.
- Earlier, the passport size photo and your signature on a paper were needed. Now you can upload photos of these documents or the apps provide the facility to take a selfie. The apps also accept the digital signature.
- The address proof like Aadhaar card or Driving License or Voter ID or Passport or a recent electricity bill or bank statement. One of the documents is enough for the address proof
- The proof of identity – Aadhaar card or Driving License or Voter ID or Passport.
- In-person verification is done online through a video call, or it might not be that necessary.
Financial safety tip – One must open a Demat account only with the SEBI registered Brokers. 👇
Check the Official List of SEBI registered Brokers (equity segment) here ➡️ SEBI Registered Stock Brokers
Official List of SEBI registered Brokers (equity Derivative Segment) here➡️ SEBI registered Brokers