How To Buy Shares in India 2021-getinstartup

How To Buy Shares in India 2021| Tips for Beginners Interested in Share Market

Hey Visitors! Do you know how to buy shares in India? Are you aware of the necessary conditions to step into the share market? Are you someone who is looking to invest in shares in India but you’re a newbie? Well, this article on “How to buy shares in India 2021” will guide you to get started in the Share Market in India. Regardless, if you are an Indian resident or live most of the way all around the globe, Indian stocks are the most sizzling global investments in recent times. Buying shares is not everyone’s cup of tea, but it can earn you a huge amount of money. If you’re ready to bear high risks, then shares give you favorable returns.

So, let just start off by knowing the actual context of shares.

What are Shares?

In Financial terms, a Share is a group of units that are used as mutual funds, real estate investment trusts. Shares, or business shares, establish the company’s possession value, which gives investors the option to vote and also allows them to appeal for a residual claim on corporate pay as capital profits.

What is Share Market? How does it work?

Share market is gathering of buyers and the stock sellers which represent the possession claims on businesses, these may consist of securities recorded on a public stock exchange, also the shares record that is just exchanged secretly by the private MNC’s through crowdfunding platforms. Investments are mostly done using Stock-brokerages and digital trading. Stock Exchange is an exchange of shares where stock brokers and traders can buy and sell the shares and other securities.

Market Participants first have to be registered with stock exchanges and SEBI (Securities and Exchange Board of India) to conduct trades. SEBI creates a code of conduct for trading. The company that wishes its shares to be traded gets on the list of the primary market by offering an IPO (Initial Public Offering). The shares get listed and then traded in the Secondary market. Some popular stockbroker firms are HDFC securities Ltd, Angel Broking Ltd, Kotak Securities Ltd. In the above paragraph, we have discussed how to buy shares in India 2021 and how the market works.

How to Buy Shares in India 2021

After knowing the market process, you can buy shares online with a click. Let us have a look at the steps through which beginners can register and get started with their Share Market Investments. Here’s a step guide to help you.

1. Get a PAN Card:

A PAN or Permanent Account Number is an essential requirement for entering into any financial Exchanges in our country. PAN is a unique 10 digit Alphanumeric digit which income text department of India assigns to an individual for assessing their tax liabilities.

A PAN card also works as identity proof. To apply for PAN, you can visit the Service Unit Website and can download the forms. Fill in all the necessary details asked and share the documents with the Income Tax Department via Email (provided on the forms). This is the mandatory step on how to buy shares in India 2021.

2. Open a Demat or Trading Account:

Before investing or purchasing shares online, you must open a Demat account. Now, you must be worried that what does this means?

  • A Demat account is called a Dematerialized account where your physical shares will be converted and stored in an electronic format. After opening an Online Demat account, you will get a unique Demat account number. This number will be quoted during buying or selling shares.
  • This Demat account works the same as a Bank account. The number of shares sold and purchased will be automatically debited or credited to your account.
  • A Demat account can only be created with a Depository Participant (DP). A DP is registered by Central Securities Depositories Limited (CSDL) or National Securities Depository Limited (NSDL) or both. We will discuss this in brief later.

3. Find and Contact a Broker

We can’t directly go to the share market and buy or sell the shares like we buy things regularly. Brokers are the authorized people, acting as the intermediate between you and the share market who can buy and sell shares. Brokers can be an individual or a company or an even online agency which are registered and licensed by SEBI.

4. Open a Savings Bank Account

If you don’t have an account in any bank. Then, they have to open a new Bank account in order to transfer money (Funds) to your broker’s bank account for share purchases. Your profits will be deposited in your banking account, only if you’d like. Mostly, people prefer to create new separate savings accounts, especially for share trading purposes.

5. Depository Participant

Depositary Participant is also an important thing that you must be aware of. There are two depositories in India: NSDL and CDSL as discussed above. Both these have agents in the form of Depository Participants who will provide you an account to store the shares you hold. It is not the same as a Demat or trading account as in Demat it shows the number of shares you hold and the Trading reflects the buying and selling that has taken place in your account. Depository Participants will hold those shares that you bought and will release the shares you sold. Usually, the brokers take care of this.

6. Apply UIN if you want to invest BIG

Unique Identification Number (UIN) with the above-mentioned requirements is needed if you want to trade for Rs. 1, 00,000 or above in a single transaction. UIN is the primary thing if you want to trade BIG in the share market. For regular users, it is not required.

7. Buy Shares / Dividends Credited

Before buying any company’s share you must consult with your broker about the quality, quantity, and purchase price. When the broker feels like the right time to invest or buy, they will purchase the shares on your behalf.

In the share market, the buy order doesn’t remain valid for a lifetime, it remains valid for a certain time period and if your buy price doesn’t reach the set point then, the order is canceled and you have to owe a new order. Once your share reaches the price, the profit will be transferred to your savings bank account.

In an online broker system, they have customer care numbers from where they place your order if your internet service is not working at that particular time.

How To Buy Shares in India 2021-1-getinstartup

The buying and selling take place in BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). These two authorities are also responsible for how to buy shares in India 2021 all the buying and selling of shares. However, the broker will guide all the in-market strategies.


After reading out our article on “How to Buy Shares in India 2021”, we are confident that we provided you the complete information about how to get started in the share market.

But in the end, there’s a tip for all the beginners, avoid getting carried away by the rumors of the share market. If you stand in a crowd and ask “aj Market Kaisa Hai?” (How’s the market today?) You will be receiving opinions from people who have never invested in shares. So, always ask the broker first.

If you want more articles related to Share Market. Then, comment down and let us know.

2 Thoughts to “How To Buy Shares in India 2021| Tips for Beginners Interested in Share Market”

  1. Highly knowledgeable 🔥🔥

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