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I want to invest in STOCK MARKET of INDIA . What steps should I take? What is the Correct procedure?

(Whom to approach and how to start investing in SEBI? Guys please help I am an Infant to stock market.

Thanks for your answers)

Answer:

First and foremost: SEBI is a regulatory body in stock market space. So you can not invest in SEBI.

If you wish to invest in stock markets:

1. If you wish to invest in the markets itself i.e. BSE / NSE etc. , it is not possible. Both the markets are not still listed on any exchanges. You can look for the BSE shares ( privately placed by people). But you won’t find any quotes etc on markets. Don’t do this is my frank suggestion.

2. You wish to buy and sell shares of various companies on Stock Markets. This is most common and regular investment avenue. Most probably you wish to do this.

For this you must have following accounts opened on your name.

Bank Account:
you will keep your money / savings here. When you buy shares you will issue a cheque from this account and when you sell you will get credits directly in this account or you will get cheque which you will deposit in this account. Most probably this will be a Savings Bank (SB) account with cheque facility.

Demat Account:
When you buy shares from the stock markets, you will get shares in demat format. These shares will be credited to this account. When you sell shares, you will issue DIS and sold shares will be debited from this account. You can transfer the shares to other people from this account, too.

Trading Account:
All your buy and sell trades will be effected in this account. All share transactions will be in this account.

If you can link all three accounts to each other, you won’t find it difficult as everything ( movement of shares and money ) is automatic. Few banks and share brokers offer such services. Else you can have a demat account and trading account with a same broker for easy share movement and trading.

Please enquire and collect information about opening of accounts from few brokers near by you. Tabulate it and then choose for the share broker / service provider. Take into account charges for opening accounts , yearly fees, brokerage charged etc.

Wish you all the money in the markets. In case you wish to know when ever you wish, please feel free to ask relevant questions in this forum or email me. Am in the same field for years.

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