To start buying shares online, you must possess certain documents and follow some steps. Here’s how you should proceed.

A permanent account number or PAN is a 10-character alphanumeric identifier issued by the Indian Income Tax DepartmentHyderabad Wealth Management. You must obtain a PAN card before you start your trading journey.

Government regulations require you to have a PAN card before you can make financial transactions in the share market. It assesses your tax liability. A PAN card can be obtained by visiting a centre or applying onlineJaipur Investment. If you have a valid Aadhaar card, you will get a PAN in a couple of days.

The second step towards investing in shares online is opening a demat account. A demat or Dematerialized account has the records of the shares you hold in a dematerialized or electronic format.

You can open a free Demat account through any authorized bank, financial institution, or broker, with valid documents and ID proofs. After your online Demat account is active, you will receive a Demat Account Number. This unique number is essential to buy or sell shares.

You can deposit and withdraw money in this account, just like a bank savings account.

The number of shares you buy or sell will also be credited or debited in this account.Chennai Stock

A Demat account can only be opened with a Depository Participant (DP), who has to be registered with National Securities Depository Limited (NSDL) or Central Securities Depositories Limited (CSDL), or both.

Next, you must open a trading account to buy and sell shares in the stock market. This account is required, in addition to the Demat account, to buy shares online in India. You will also get a unique Trading Account Number, which must be provided while buying shares online.

Shares cannot be purchased directly from stock markets; you need a broker to handle the transaction. This broker can be an individual or a brokerage platform or agency that acts as a financial intermediary between you and the stock market.

A stock market broker must be certified by the Securities Exchange Board of India (SEBI), the market regulator. Needless to say, all this is futile if you do not have a bank account. Your Demat and Trading account must be linked to your bank account for transactions.

Unique Identification Number of UIN is mandatory by SEBI for stock market investors. You can get a UIN through NSDL, for share transactions amounting to one lakh Indian rupees or more. You can transact for lesser amounts even if you do not have a UIN.

Once you follow through with all these steps, you are all set to purchase shares. The shares you order for purchase will be matched with a similar sale order in the stock exchange. Then, it will be settled and credited into your Demat account.

Now that you know how to buy shares online in India, the next question is which shares to invest in and how to determine the suitability of a company’s shares.