The stock market is the place where different stocks or shares of the companies are traded in multiple exchanges. The stock market comprises activities like buying and selling stocks for the public limited companies. The trade-in stock markets are regulated by different exchanges.
It allows an individual to trade in different financial securities like equities, bonds, currencies, corporate bonds, derivatives trading, etc. Stock market is a market that supports and conducts trading activities for various kinds of financial securities in a secure and safe manner. Since the trading is done in bulk it is the responsibility of the regulator to make sure fair trade practices are followed in the market.
Online Share Trading in India:
In India, the stock market is regulated by a governing body called Securities and Exchange Board of India (SEBI). Earlier for trading in India, physical certificates were issued by the traders but as time and technology evolve the trading shifts into an online platform. The online trading environment is much more safe, quick, and easy to understand. The online trading platform eased the interest of the general public in trading or investing activity. With such advancements and ease in stock market, people have started finding comfort in investing.
Now-a-days, many skilled workers are opting for full-time trading activities. To start trading in India, one is required to have a demat and trading account. Both the accounts can be easily opened online. Demat account is commonly known as Dematerialization. Both the accounts are highly important for trading purposes. Let’s take a look at the steps or processes to open a DEMAT account and a trading account.
To open a DEMAT account follow the following steps:
- Choose Depository Participant (DP) registered with NSDL and CDSL
- Visit the selected DP’s official website or mobile application (if available)
- Fill in the basic details like name, email address, and contact number.
- Complete the KYC requirements
- Submit the required documents and complete the verification of your documents
- Sign the agreement stating rights and duties as an investor
- Receive your Beneficial Owner Id (BO ID). This ID is required to initiate the trading and investing activities
To open a trading account follow the steps mentioned below:
- Choose a SEBI registered stockbroker
- Complete the trading account opening form and submit the same
- Fulfill the KYC requirements
- Complete the verification process for documents submitted
- Sign the agreement stating the duties and responsibilities of the investor
- Receive a trading account number
Note: For KYC purposes, your PAN card should be linked with your AADHAR card and your bank account
Is the DEMAT account free?
Yes, the DEMAT account opening is free but comes with maintenance and other charges depending upon the Depository Participant. One can easily open a DEMAT account online with any of the reputed depository participants. The charges you have to pay for the continuation of your DEMAT account are the annual maintenance charge, transaction fee on the account transactions. Transaction charges vary from broker to broker. Transaction charges could be a fixed rate on your transactions or they can be paid per transaction depending on the depository participant.
Stock Trading in India is not a new concept. The process of doing it changes as per the advancements in technology. Online Stock Market Trading has eased the interest of the general public in it. However, it is necessary to open a DEMAT account and a trading account to initiate the trading activities. A DEMAT account is similar to a bank account. The main purpose of online trading through DEMAT accounts is to ignore the risk of holding securities in a physical format as in DEMAT accounts the securities and stocks are kept in an electronic format.