Investing in the stock market is no longer limited to financial experts or seasoned traders. With digital access, transparent processes, and a growing interest in wealth creation, anyone with a bank account and basic documentation can begin their investment journey. If you’re wondering how to purchase shares in India, this guide is tailored for you.
From understanding what shares are to learning the exact steps you need to take, we’ll walk you through the process to purchase shares, how stock markets work, and what to expect along the way. Let’s dive in.
Purchasing a share means buying a portion of a company. As a shareholder, you hold ownership however small in the business. Companies issue shares to raise capital for expansion, operations, or other financial goals. In return, investors expect returns in the form of price appreciation or dividends.
For example, when you buy 10 shares of a listed company at ₹100 each, you’re investing ₹1,000 in its equity. If the share price rises to ₹120, your investment grows to ₹1,200, and you earn a profit of ₹200 if you sell.
India has two primary stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). These platforms facilitate the buying and selling of securities. Both exchanges are regulated by the Securities and Exchange Board of India (SEBI), which ensures transparency, investor protection, and market integrity.
The BSE and NSE operate on an electronic trading system, which means all trades are conducted digitally in real-time. When you place a trade, it is matched with a counterparty’s offer through a matching engine. The final transaction is settled by clearing corporations, and the shares are credited to your Demat account.
Before you can begin investing, there are a few essential prerequisites that every Indian investor must fulfill:
A Permanent Account Number (PAN) issued by the Income Tax Department is mandatory for stock market transactions. It helps track investments and ensures regulatory compliance.
Aadhaar serves as your official identity proof, and a linked mobile number is necessary for OTP verification during online account openings and transactions.
A savings bank account enables fund transfers to and from your trading platform. Ensure the bank account is in your name and linked with your PAN and Aadhaar.
A Demat (Dematerialised) account is where your shares are held in electronic form. In India, physical share certificates are obsolete, and a Demat account is compulsory for buying listed equities. It acts as a digital locker, storing not just shares, but also bonds, ETFs, and mutual funds.
Your Demat account is maintained with depositories such as NSDL or CDSL, through a Depository Participant (DP) usually your broker or financial institution. If you’re new and want to understand the step-by-step process in detail, here’s a complete guide on how to Open Demat Account.
While a Demat account holds your shares, a trading account is the interface that lets you place buy or sell orders. It connects you to the stock exchange, allowing real-time trading in stocks, derivatives, and other financial instruments.
Both Demat and trading accounts are typically opened together as a bundled service by SEBI-registered brokers.
Documents & Accounts You Need to Buy Shares
Starting with shares is easier than ever. Here’s a simplified roadmap for beginners:
Select a stockbroker who is registered with SEBI and provides access to the exchanges. Evaluate them based on brokerage charges, trading platform experience, research support, and customer service. Some platforms even offer zero brokerage stock trading on equity delivery, which is ideal for long-term investors.
Once you’ve selected a broker, the next step is to open a Demat and trading account. The process is mostly digital and can be completed using e-KYC. You’ll be asked to submit scanned copies of your PAN, Aadhaar, a passport-size photo, and a cancelled cheque or bank statement.
After verification, you’ll receive login credentials for your trading platform.
Once registered, log in to your trading platform or mobile app. Most platforms offer tools like watchlists, charts, and order books to help you make informed decisions.
You can search for a stock using its name or ticker symbol. It’s advisable for beginners to focus on well-established companies or explore educational resources provided by brokers. If you’re unsure where to begin, many traders start with recommendations, index stocks, or even test strategies through a Virtual Trading Platform.
There are typically two types of buy orders:
Choose the quantity and price, review your order, and confirm the purchase.
Upon successful execution, you’ll receive a trade confirmation. In India, share settlements follow the T+1 cycle meaning shares are credited to your Demat account one business day after the trade.
You can monitor your holdings and performance using the portfolio section in your platform.
Your 6-Step Guide to Buying Shares Online
1. Choose SEBI-Registered Broker
2. Open Demat + Trading Account
3. Log In to Trading Platform
4. Research & Select Stock
5. Place a Buy Order (Market or Limit)
6. Confirm & Track Your Holdings
Today, you can invest using various platforms:
Make sure your platform offers 2FA security, market depth data, and integrated bank payment systems. Some platforms even allow you to explore how to buy unlisted shares, subject to SEBI guidelines and liquidity risks.
Technically, no. Unlike in the U.S., where Direct Stock Purchase Plans (DSPPs) exist for select companies, India does not have a widespread system for individuals to buy directly from companies. All transactions must be routed through a broker registered with SEBI.
Even IPO applications require you to have a Demat account. While brokers facilitate IPO access, they do not directly allot shares; allotments are done through the registrar to the issue.
Investors must be aware of the cost structures involved:
This is the fee charged by your broker. It could be flat or a percentage of your trade value. Some brokers offer free delivery trades or bundled annual plans.
These include:
These can add up to around 0.1%–0.25% of your total trade value.
Always read your broker’s fee structure carefully before placing trades.
Starting right can help you avoid costly mistakes. Here are some pro tips:
Don’t rely purely on hearsay. Understand the business model, financial health, and industry trends before investing.
Invest only what you can afford to lose. Diversification reduces risk and builds long-term confidence.
Use built-in tools to track performance. Many platforms also let you simulate trading through demo accounts, helping you get comfortable with market behavior.
For beginners wondering how to invest in shares for the first time, the journey may seem overwhelming at first but it’s really just a series of logical steps. From fulfilling basic documentation and opening a Demat account to learning how to trade in stocks, everything is now accessible digitally.
With the right platform, market knowledge, and discipline, you can confidently begin your journey toward wealth creation. Whether you’re planning to invest long-term or explore the best midcap stocks to buy, understanding the foundation is key to making smart investment decisions.
What is the minimum amount to buy shares in India?
There’s no fixed minimum. You can start with the price of a single share plus applicable fees. Even ₹100 can get you started.
Can I buy shares without a Demat account?
No. A Demat account is mandatory for trading listed stocks in India.
Which is the best app to purchase shares in India?
This depends on your preferences. Look for platforms that offer user-friendly design, research tools, and low fees.
Can I buy international stocks from India?
Yes, via the Liberalised Remittance Scheme (LRS). Several Indian brokers offer international investing platforms with access to U.S. and global markets.
How to purchase shares online without a broker?
In India, buying shares without a broker is not feasible. All trades must go through a SEBI-registered intermediary.
The opinions and investment advice shared by financial experts on this platform are solely their own and do not represent the views of the website or its management. We strongly recommend consulting with certified professionals before making any investment decisions.
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Nov 14, 2025
Nov 14, 2025
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