1. PAN card
Get a pan card first or a permanent account number. It is a primary requirement for any financial transactions in India. It's a unique 10 digit alphanumeric number which is assigned particularly to every individual by the tax authorities for assessing their tax liabilities. Usually, PAN Card is required for investing in mutual funds are opening a bank account or filing income tax returns but to invest in shares in India you must need PAN card, as it is essential.
It is not easy to go to the stock market where you can buy or sell stocks or shares. As there are some people who are authorized to buy and sell in the stock market. It can be various individuals, the group of individuals, companies or there are some online agencies, which are registered and licensed by SEBI as well as Exchanges Boards of India, who regulate the share market. Start trading in a stock market with the help of broker who will help you to trade in stock market.
3. Demat and trading account
Open your Demat and trading account once you get a broker. The second important thing you need is a demat or a trading account. Demat account will help you to hold your stocks or shares in your name and it will reflect in your stock portfolio. No one can hold shares in physical form so Demat and trading account is essential part.You will never get a physical share certificate as it will be reflected in your Demat account or trading account statements. Trading account is necessary is it is an intermediary to facilitate buying and selling process. Without trading account one cannot invest in share market in India.
4. Depository Participant
There are two main depositories present in India that you should know i.e. NSDL and CDSL. NSDL is abbreviated as National Securities Depository Limited and CDSL is abbreviated as Central Depository services Limited. These two depositories have their agents in the form of depository participants. They will provide you with an account to store the shares you hold. It is taken care by the broker, who is going to guide you through the trading account as well as Demat opening process and for registering in a depository. Still you need to be aware of it.
5. Buying and selling
Buying and Selling is the general process of trading, but you need to inform your broker about what type of share and in what quantity you wish to buy it and which price or you want to sell it. These buying and selling takes place basically in two exchanges, that are Bombay Stock Exchange and national stock exchange (BSE and NSE). In these store exchanges buying and selling of shares and commodities takes place. You have to mention the exchange to your broker and if you are not confident about particular exchange you can take help from a broker, he will guide you where to trade.
6. UIN- unique Identification number
It is required in case if you trade for is 100000 or more in a single time. If you are planning to go big in share market, the Unique Identification number is essential otherwise for regular investors auditor's it is not required.
Apart from the above requirements, there is need of expert advice that we provide Stock Option Tips and Option Trading Tips, to trade effectively in the stock market.