How to Buy Shares Online in India for Beginners?

Curious about stock market investing but don’t know where to start? This beginner-friendly guide will teach you the simple steps to buy shares online in India. Ready to begin your investment journey? Keep reading!

1. Obtain a PAN Card

To buy shares online in India, you first need a PAN (Permanent Account Number) card. It is a unique 10-digit number issued by the Income Tax Department. A PAN card is necessary for opening a bank or demat account and for trading in the stock market.

You can apply for a PAN card online through the NSDL (now Protean) or UTIITSL websites. The application fee is ₹107 for delivery within India. You will need to provide proof of identity, address, and date of birth. After submitting the application and required documents, the PAN card is usually issued within 15 days.

Example:

Priyansh is a 20-year-old student from Bengaluru. He wants to invest in stocks. He visits the NSDL website, fills out Form 49A, and uploads his Aadhaar card as proof. He pays ₹107 online. After 12 days, he received his PAN card at home.

Here is a simple table summarising the process:

2. Choose a SEBI-registered broker

After receiving the PAN card, you need to open an account with a stockbroker. Ensure the broker is registered with SEBI (Securities and Exchange Board of India). This ensures your investments are safe and regulated. Popular SEBI-registered brokers include Zerodha, Groww, Angel One, and ICICI Direct. Consider factors like brokerage fees, platform usability, and customer support when choosing.

Here is a table to help you compare:

Example:

Sagar is 22 years old and lives in Bengaluru. He wants to start investing in stocks. He chooses Zerodha, a SEBI-registered broker (INZ000031633). He opens an account, adds ₹5,000, and buys 10 shares of a company at ₹500 each. Now, Sagar is a stock investor.

Always verify the broker's SEBI registration on the official SEBI website before proceeding.

3. Open Demat and Trading Accounts

To buy and sell shares online in India, you need two accounts:

• Demat Account: Holds your shares in electronic form.
• Trading Account: Used to place buy or sell orders on the stock exchange.

You can open both accounts online through a SEBI-registered broker like Zerodha, Groww, or ICICI Direct. The process is simple and often paperless.

Example:

Rohit is 21 years old and lives in Pune. He wants to invest in stocks. He chooses Groww, a SEBI-registered broker. He opens a Demat and Trading account online. He uploads his PAN and Aadhaar, links his bank account, and completes eKYC. Then he deposits ₹3,000 and buys 5 shares at ₹600 each. Now, Rohit is a stock investor.

A table to guide you:

4. Link Your Bank Account and Add Funds

To start trading, you must link your bank account to your trading account. This allows you to add money for buying shares. Use the same bank account you registered during account opening. You can add funds using UPI, net banking, or IMPS. These methods are fast and secure. Ensure the bank account name matches your trading account name.

A simple table to guide you:

Example:

Umang is 23 years old and resides in Bengaluru. He has opened a trading account with Zerodha and linked his HDFC Bank account. To begin investing, he uses UPI to add ₹5,000 to his trading account. The transfer is instant and free. Umang is now ready to buy shares online.

Always transfer funds from your registered bank account to avoid issues.

5. Start Investing

Now that your accounts are set up and funded, you can begin investing in the stock market. Log in to your trading account, search for companies or stocks you are interested in, and place a buy order. You can choose between a market order (buying at the current price) or a limit order (setting a specific price). After the purchase, the shares will be credited to your demat account.

A table to guide you:

Note: Trading hours in India are from 9:15 AM to 3:30 PM IST, Monday to Friday.

Example:

Piyush is 24 years old and lives in Mumbai. He has ₹10,000 in his trading account. He logs into his Zerodha account and searches for Infosys shares. The current price is ₹1,400 (as of 03 May 2025). He places a market order to buy 5 shares, totaling ₹7,000. After confirming the order, the shares are credited to his Demat account. Piyush now monitors his investment through the portfolio section of his trading platform.

Conclusion

Buying shares online in India is easy if you follow these steps: get a PAN card, choose a SEBI-registered broker, open Demat and trading accounts, link your bank account, and start investing. Always research before buying stocks. Start small, learn, and grow your investments over time. Happy investing!

FAQs

1. Do I need a PAN card to buy shares?

Yes, a PAN card is required to open a Demat and trading account.

2. Can I start investing with a small amount?

Yes, many brokers allow you to start with as little as ₹100 or ₹500.

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LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?