How To Buy Shares?

what are the documents required to open an online Demat account and Trading
Account ?

Your Aim is to increase your Net worth through the highest returns from the
market, then you should invest in stocks and securities. Indian market has given
returns upto 16% and more. As an investor, you can also invest in asset classes,
like gold, real estate and mutual funds.

You must, however understand the basics of stock market before investing your
hard earned money in shares. Investment in shares is even seen as the risk of high
market volatility, and experts will stop you from taking unnecessary risks. But it
has been historically proved that stock markets offer the best return.

In the present digital age, you can purchase shares online at the click of mouse
.here are the steps to buy shares online:-

1.GETTING A PAN CARD:- You need an identity proof , a saving bank account and a
PAN card. To get a PAN card, aplly for ait online at NSDL site or this website called
UTITSL. It cost about ₹100 or so. Obtaining a permanent account number(PAN) is
the first step towards any trade in the stock market.

2. DEMAT ACCOUNT:- Before purchasing shares online, you have to compulsorily

open a Demat account. Investing in equity shares in physical form entails a long
and lengthy procedure, lot of paperwork and risk of getting fake shares. Demat
account is used to hold shares and securities in dematerialized/electronic format.
Having a Demat account allows you to buy shares and store them safely. Apply
online to NSDL or CDSL for a demat account or get your chosen share broker to do
it for you. It can be used to hold a variety of investments like equity shares,
exchange traded funds, mutual funds, bonds and government securities .

3. OPEN A TRADING ACCOUNT:- The next step is to open a trading account . A

trading account is used to purchase and sell shares in stock markets . once you
have a demat account, and want to purchase shares online , you need a trading
account . While purchasing shares online, you have to quote your unique trading
account number.

4. REGISTER WITH A BROKER/BROKERAGE PLATFORMS:- As you cannot purchase

shares directly from stock markets , you have to use the services of a broker. A
broker is a financial intermediary, acting as the link between you and the stock
market. Market regulator, Securities Exchange Board Of India(SEBI) Certifies
brokers in India.

5. YOU WILL ALSO NEED A BANK ACCOUNT:- You cannot purchase shares online
without having a bank account. Your trading account links your demat account
with your bank account. If you want to purchase online shares , then you have to
make the request order through your trading account. The Broker Will then
forward the transactions for settlement in the stock exchange. Post settlement,
the shares will be transferred to your Demat account within the working days,
while the necessary charges, or purchase cost will be debited from your bank
account.

6. GET YOUR UNIQUE IDENTIFICATION NUMBER (UIN):- To create a database of

all market participants and investors, SEBI has made it compulsory for investors to
get a UIN through point of service(POS) agents appointed by NSDL. You must,
however note that a UIN is only required when you are trading in capital of Rs.1
Lakh or more. If you want to purchase online shares below the amount of Rs.1
Lakh, you don’t require UIN.

After following the five steps listed above , you are now all set to purchase shares
online. Once you place a purchase order, it will be matched with a similar sale
order in the stock exchange. After settlement your Demat Account will be credited
with the number of shares purchased.

CONCLUSIONS:- Thus for Purchasing shares online, you have to follow SEBI
mandated rules.

It is recommended to take the help of a financial advisor in making your

investment decisions. This saves one from many meshes and the fee is nominal in
comparison to the benefits advisory brings to the table. Write
us info@lakshyainvest.com or go to Lakshya Invest  to avoid these common
mistakes and keep a portfolio on track.