How to Invest in Share Market? A Beginner’s Guide!

In the modern world, investing in share markets is one of the most popular ways to set aside some money for the future. By investing in the share market, you can simply maximize your returns while minimizing your costs. Here are the essentials required to invest in the share market in India:

  • PAN Card
  • Aadhaar Card
  • Broker
  • Demat Account
  • Bank Account
  • Unique Identification Number
  • 6 months bank statement
  • A canceled cheque


For investing in the share market in India, it’s mandatory to have a PAN Card (Permanent Account Number) and an Aadhaar Card for KYC (Know Your Customer), required to open an account with SEBI (Securities and Exchange Board of India).

Also, make sure that there are no errors in the details mentioned in the cards. Besides this, according to the latest rules of the Government of India, a canceled cheque and six-month bank statement are also required to open a Demat account.


In the share market, you can’t just go and buy/sell shares on your own. You need to hire a broker authorized by SEBI for assisting you in trade shares. Always keep in mind to hire a broker or brokerage firm that would charge a flat brokerage fee as it costs less than the ones which take a commission on each transaction.


Once you’ve hired a broker, the next step is to open a Demat account (Dematerialised account). The shares aren’t a physical entity so the Demat Account holds your shares in a digital form in your name. The shares are credited or debited from your Demat Account itself.

A Trading account acts as a link between your Demat account and bank account. This account is used to trade your shares from the Demat account and this process is executed by the broker hired.


A Bank account linked with a Demat account & Trading account is very necessary for hassle-free transactions. If you sell a share, it’s debited from your Demat account, and the money is credited to your bank account and vice versa.


UIN is not mandatory until you wish to make a transaction worth Rs. 1,000,000 or above. There’s no requirement if the transaction in your account is less than this amount.


Once you’re done with all the documentation and formalities, you’re all set to invest in shares. You need to inform your broker of the entry amount and quantity of shares to get started. Once your order reaches expiry, it will be withdrawn and you can place the same order afresh.

Here’s what you need to keep in mind while investing in shares:

  • Fix investment goals and timeline and choose financial assets accordingly
  • Choose the right time to invest & do it regularly
  • Communicate with your broker while taking any decision
  • Do a complete research on the company you wish to invest in
  • Be patient & beware of rumors
  • Choose short term/long term assets based on your goals

So, what are you waiting for now?

Just get going and start investing in your future.