Buy Shares Online India
Investing in the share market means buying stocks of a company. If you want to buy shares, you must first approach a SEBI-registered member, or broker, of a stock exchange. You need to then register as an investor before you begin investing; to do so, follow these steps:
buy shares online india
A trading account is a bridge between your Demat and bank account. It is opened with a stock broker. When an investor buys a certain number of shares, the first step is to transfer the amount from the bank account to the trading account. After the money is credited, the transaction is initiated.
As an investor, you can invest in a wide range of asset classes, like gold, real estate, and mutual funds. But, it has been historically proved that stock markets offer the best returns. If your goal is capital appreciation and earning the highest returns from the market, you can consider investing in stocks and securities. If you invest in shares for the long term, you can earn returns that range up to 16%, thus allowing you the opportunity of wealth creation. However, before starting in the share market, you must understand the stock market basics.
Before purchasing shares online, it is mandatory to open a Demat Account. A Demat account is also known as a Dematerialized account in which physical shares held by you are dematerialised or converted in an electronic format.
Once you open an online Demat Account, the broker will provide you with your unique Demat Account number. This account number is important as it is quoted while buying or selling shares. A Demat Account is similar to your bank account, where you have the option to deposit and withdraw money. The number of shares purchased or sold is credited or debited in your account accordingly.
The next step is to open a Trading Account. A trading account is used to purchase and sell shares in the stock market. Once you have a Demat Account to hold the shares virtually, you need a Trading Account to complete the buy and sell transaction. While purchasing shares online, you have to quote your unique Trading Account number.
You cannot purchase shares directly from the stock market, and 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. The Securities and Exchange Board of India (SEBI) is the regulatory body that certifies brokers in India.
If you want to purchase online shares, you have to make the requisite order through your Demat and Trading Account. The broker will then forward the transaction for settlement in the stock exchange. Once settled, the shares will be transferred to your Demat Account within two working days. Furthermore, the necessary changes, or purchase costs, will be debited from your bank account.
After understanding the six steps listed above, you are now all set to purchase shares online. Once you place a purchase order, it is matched with a similar sale order in the stock exchange. After settlement, your Demat Account is credited with the number of shares purchased.
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In India, people have always been sceptical about investing in shares or equities. While most of you prefer buying gold, silver or land as these can always appreciate in value, in the future. You need to learn how to buy shares through Demat. You can buy and sell shares at a reasonable level of profit. You can source a broker to help you trade through, during the initial days. Once you become a thorough expert in buying and selling shares you can try dabbling at the stock market on your own.
This section will get you off to your online share purchase activity. To facilitate an easier transition of buying and selling shares, you need to necessarily open a valid Demat account. You will have a fill in a demat form online. You will have to attest to the required set of documents and scan these to the brokerage company you desire transacting with. After the documents are verified in a precise manner, you can open a demat account and you can use the account to buy and sell stocks, shares and derivatives. Your demat account is the storehouse of your stock portfolio.
UIN is otherwise known as a Unique Identification Number. UIN is mandatory for investors who transact with a capital of 1, 00, 000 and above. For usual or low key investors a UIN would not be needed. Investors usually play with the bigger innings to buy high-end blue chip stocks or to buy shares of high profile companies. Bigger innings stocks can assure you better returns on the investment over mediocre stocks. Apple Inc., Nestle, Hindustan Lever, India Cements and L& T are some of the blue chip shares you can try investing your money with. The stock market offers a huge potential for investors and shares to buy are several from good and established companies. Your Unique Identification Number is something that you must safeguard at all times, as it is the primary way to identify yourself as an investor with your Demat account and other linked accounts.
This is how you indulge in buying and selling of shares. Say you want to buy a share of Reliance Industries at Rupees 885; you can inform your broker accordingly. Buy Reliance Industries Ltd at Rupees 885. Quantity: 10. Even if you are operating online, you can contact the broker by dialling the toll free number or customer care number, if you do not have access to internet at that particular point of time. If you want to sell a Reliance Share at Rupees 895, you can do so accordingly. Sell Reliance Shares Ltd, Quantity: 3, Price: 895. The sale order will be processed when the share reaches that price. You can execute a stop order transaction, if you want to freeze a particular transaction on account of market fluctuations.
If you want to learn how to buy shares, you can use a number of means and tools at your disposal. There are blogs you can read on all the major brokerage websites and videos you can learn from too. Furthermore, the internet is an online environment where you can take some courses on share trading and get the best advice from experts, while learning from their common mistakes.
WASHINGTON - A federal grand jury in Omaha, Neb., has indicted three individuals on charges of conspiracy, fraud and aggravated identity theft stemming from a high-tech, international fraud scheme designed to hijack online brokerage accounts for profit, Assistant Attorney General Alice S. Fisher of the Criminal Division, U.S. Attorney Joe W. Stecher for the District of Nebraska, FBI Executive Assistant Director for Criminal Investigations Michael A. Mason, and Securities and Exchange Commission (SEC) Chairman Christopher Cox announced today.
According to the indictment, between July and November 2006, the defendants, operating primarily from Thailand and India, used their personal online brokerage accounts to purchase shares of several thinly-traded stocks. They then hacked into online brokerage accounts of others using stolen usernames and passwords or established new brokerage accounts using stolen identities. Using these accounts, the defendants made scores of unauthorized purchases of the same stocks to drive up the market price. Once the share prices were artificially inflated, the defendants sold their own shares for a substantial profit.
In one of many examples alleged in the indictment, Marimuthu placed orders on Aug. 28, 2006, through his personal online brokerage account, to purchase 32,000 shares of stock in a company at prices from $2 to $3.20 per share. Chockalingam also placed an order through his personal online brokerage account to purchase 450 shares of the same stock for $3.20 per share.
The process of buying shares online in India is simple and hassle-free. The primary requirement to buy shares is a demat and trading account. With online stockbrokers like Bajaj Financial Securities Limited you can set up your demat and trading account in a few minutes and you will be ready to buy shares online.
Although the procedure to buy shares online is simple and convenient, it is important to understand it in detail, for a hassle-free experience. Let us look at the key steps to buy shares online in India.
Invеѕting in ѕtосk mаrkеt today is no longer аbоut mystery and suspense. It is indeed a profitable prospect. Stock investment certainly has the potential to make your money grow and deliver superior inflation-adjusted returns with time. Apart from securing probable profits, buying and selling shares on-line can also impart invaluable experience in trading. However, the mainstay of it all is selecting the right shares.
With an explicit financial objective, most investors buy stocks online, through an investment account at an online or discount stockbroker. In order to begin trading, you need both a trading and a Demat account. A Demat account will act as the common repository that allows you to store the shares you have purchased, while a trading account will facilitate the actual buying and selling activities. This article will throw light on how to buy shares and also highlight some strategies to buy shares.
In order to buy shares, the first is to get a pan card. A Permanent Account Number (PAN) is the primary prerequisite, to invest in the stock market and buying shares. It is a unique 10 digit Alpha-Numeric number assigned to an individual by the Tax Authorities for assessing their tax liabilities. In India, the first thing you will need to be able to invest in shares in India is a PAN card, so get it first.
The third step to buy shares is to create a Demat and Trading account.Once you have a broker, you will now need a Demat and Trading account. You cannot hold shares in physical form, they have to be in a Dematerialized state, thus a Demat account does that for you. It will store the shares in your account in your name. The buying and selling of shares will also require a Trading account. It acts as an intermediary that facilitates the buying and selling. Usually, your broker takes care of all this. Whether you approach a broking firm, online agencies, or an individual broker. 041b061a72