How To Invest in Share Market? Step-by-Step Guide


For beginners, trading and investing would seem like a complicated process initially. Certain accounts need to be opened, along with fulfilling formalities. If you want to start trading but have no clue about its process, then we’re to help.

Step-by-Step Guide on How to Invest in Share Market

In this guide, we’ve mentioned everything step-by-step for you. When you finish reading this article, you’d be ready to jump into the share market.

1. Get a PAN card

Regardless of profession, every citizen of India needs to have a PAN card. Considering the population of the country, it’s not surprising that the agents might have made a mistake while entering your name. Within the boundaries of this country, a person has to have a PAN card for executing or carrying out financial transactions. So, the first and foremost thing that an investor needs is a PAN card that is free of all errors.

2. Get the Help of a Stockbroker

You cannot directly jump into the share market and buy stocks just because you have cash. It doesn’t work like that. Certain people have been authorized to carry out the process of the stock exchange and execute the selling and buying of shares. Such people are assigned the name of brokers or stockbrokers.

Hiring a stockbroker is highly beneficial as they will assist you while investing in the share market. Whether it’s buying stocks or fulfilling all the required formalities, everything will be taken care of by the stockbroker so that you have a smooth entry into the Indian stock market. Also, it’s strongly recommended to get a broker from the brokerage firm. They will be charging flat fees, which reduces the expense in several ways. And you shouldn’t back out even if the fee is a little higher, as they deserve it in exchange for their support, right?

3. Open a Trading and a Demat Account

After you’ve got your stockbroker, now it’s time to open a Trading and a Demat account. As our country has been strongly propagating digitalization, there’s no physical form of the share anymore. Therefore, now, your Demat account is going to hold all the shares in dematerialized and digital form. Whether you sell or buy shares, they will either be debited or credited respectively from the Demat account.

On the other hand, the trading account is a facet that forms a link between the bank and the Demat account. A saving account and a trading account work alike. It extracts shares from a Demat account and then sells them at the stock market. After you have opened a Trading and Demat account, the stockbroker will carry on with the next step.

4. Link your Bank Account

Linking your Trading and Demat account to your bank account is necessary. While buying shares, the money will be debited from the bank account, and shares will be credited to the Demat account. And at the time of selling shares, the money will be credited to the bank account, and shares will be debited from the Demat account. As there’s no physical exchange of cash for shares, you got to have your bank account. Get a proper and smooth transaction by linking your bank account to the Trading and Demat account.

5. UNI Number

Having a UNI number depends upon the type of stock trading you’re willing to do. You need a UNI number only if you are planning to get involved in one transaction of Rs 1,00,000 or more.

Without a UNI number, you cannot do a transaction of Rs 1,00,000 or more. So, make sure you get a UNI number before playing big.

6. Selling and Buying of Shares

Once all the required formalities are taken care of, you can finally start trading. You will be eligible to sell and buy shares in the Indian stock market. Inform your stockbroker regarding the number of shares you intend to buy, the entry price, and the company’s name. For instance, if you are planning to buy a thousand shares from XYZ company at a price of Rs.500, let your stockbroker know about it. Even if the current price is Rs.550, your stockbroker will wait until the cost drops to 500 to buy it.

Also, if you are planning to sell your stock when the price receives a boost, inform your stockbroker about it. When the prices rise, your stockbroker is going to sell the shares for you. Apart from buying and selling, your stockbroker also must inform you when the sell or buy order is heading towards the expiry date.


Now that you know the ins and outs of trading shares in India, we hope you the best of everything. Stock trading has great potential if you know how and when to invest. Avail the services of authorized agencies, companies, or individuals who carry immense knowledge about stock trading.

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