Gen Z has been actively looking beyond the traditional modes of investing like gold and property. The participation of youth in the Indian share market is sky-high. with an increasing number of below 30 people trying their hand at the stock market.
Once considered risky and the playground of the rich, the stock market has become a household name with its technological advancement and digitization. However, along with the will to become a market investor, it is equally important to educate yourself. Learn, how you can successfully invest in the stock market, what is IPO financing, and what process you should follow to start your investment journey.
The Process to Invest in the Share Market
Initiating the task of investing in the stock market can seem to be daunting. You can follow the below-given steps to start your investment process in the share market.
Get your PAN Card:
A PAN number, or a Permanent Account Number, is the necessary document required by all Indians to do any kind of financial transaction. like opening a bank account, investing in mutual funds and bonds, or paying income tax. Almost everyone these days has a PAN card. In case you do not have one, or your PAN card has some error, get it sorted before you start your investment process.
Select your Stockbroker:
You cannot invest directly in the stock market. For this, you need to approach a SEBI registered stockbroker. and open a Trading account and Demat account with them. It is important that you do your research and selects a broker. That can offer you the lowest account opening and maintenance charges. and prompt customer support. a user-friendly online trading platform among other benefits?
Open Trading account and Demat account:
A Demat account is your virtual storehouse for the shares and securities. You hold while a Trading account is a link to your Demat account and Bank account. and lets you conduct buying and selling of shares and securities in the stock market. With leading discount brokers, you can open a Demat and a Trading account in less than 15 minutes for zero account opening charges.
Link your Demat and Trading account to Bank account:
You should link your Demat and Trading account to your bank account. Every time you make a buy or sell transaction in the stock market, deposit or withdrawal the appropriate amount of money from your bank account.
Make a purchase:
Log in to the web portal or mobile application of your stockbroker. and carefully choose the stock you want to make an investment in. Select the number of units you wish to purchase, ensure you have the funds in your bank account. and purchase your chosen stock at the listed price.
Complete the investment process:
Your order will execute Once your purchase request is confirmed. and you will receive the corresponding shares in your Demat account. The due amount deducts from your bank account and forward to the seller.
By setting up buy and sell orders with your stock broker, you can conduct trading activities in the stock market. These shares may be listed on both BSE and NSE. so you would have to mention the stock exchange on which you want to conduct trade. Note that the stock prices may be slightly different on both exchanges. Your buy or sell orders are valid for a fixed time. At the end of that period, if the trades did not happen, your order cancel and you will have to place a fresh order.
Keeping these basics in mind, you can start your investment journey in the stock market. You may start small and with increasing confidence and knowledge, expand your horizons in the stock market.
Hours Does It Take To Open A Demat Account
Opening a Demat account, verification, and activation can usually take one to three days in the offline mode. With certain reputed discount brokers, open a Demat account within minutes with eKYC. and it can take less than 24 hours for the account to get activated.
How to open a Demat account online?
- Visit your online stockbrokers’ official trading app or website.
- Fill out the Demat account opening form with details like name, age, address, and email.
- After phone and email verification, submit the documents for the PYC process. The KYC process will require the following documents;
- PAN card
- Proof of identity and address. This can be Aadhar, passport, driver’s license, voter’s ID, ration card, electricity bill, etc.
- Income proof (for investing in commodities, F & O, etc.)
- Bank passbook, canceled cheque or account statement for proof of bank account.
- Follow the instructions for in-person verification (can do it via phone call or virtually).
- Review and electronically sign the form with the Aadhar authentication process.
- On successful verification (usual verification time – 12 to 24 hours). You will get a Demat account and credentials.
- Following this, you can transfer funds into your account and begin trading.