Founded in 1992, the National Stock Exchange (NSE) has become the world’s fourth-largest stock exchange company and India’s leading stock market by trading volume. Many day traders and seasoned investors prefer it over its competition.
One thing that makes NSE a preferred stock exchange market for traders is its commitment to keep up with the changing times, ensuring that it can always provide them with new products that cater to their various investment capabilities. To date, NSE allows users to invest in the share market online, offering products and services that range from:
- Mutual funds;
- Equity derivatives;
- Interest rate derivatives;
- Currency derivatives;
- Commodity derivatives;
- Corporate bond / fixed income and debt;
- Emerge platform;
- Book building and fixed price issue.
The products are classified into three categories for trading purposes: Fixed income securities, Derivatives market and Capital market.
How to open an account?
Having an account with NSE India will allow you to start buying shares and commence your trading journey. But first, you will need to register and submit specific requirements, such as the following:
- Passport-size photo of yourself.
- Permanent account number (PAN) card.
You may also be required to submit a copy of your driver’s license, Aadhaar card, voter’s ID card, or any other proof of identification.
Many other requirements may also be asked depending on whether you are a domestic or an international investor. Domestic investors must first open a trading account with a stockbroker registered under the Securities and Exchange Board of India (SEBI). It is because no investor can directly engage in buying and selling stocks.
They need to seek the help of an intermediary, such as a SEBI-registered broker, before investing online in the share market. The broker will invest money in shares on the client’s behalf, buy and sell stocks, and represent the investor in the stock market. Because of the huge role that the stockbrokers play in your stock exchange investment journey, it is crucial to choose your representative wisely.
Note! For international investors, the steps provided in www.nseindia.com may be followed.
Login to NSE India
You will be able to log in to your account once you are registered with a broker, have completed submitting all required documents, and have successfully opened a Trading or Demat account. After a successful account opening, log-in details, such as user ID and password, will be given to you. With these details, you will be able to log in to My NSE and access your portfolio manager and your customized market watch tool.
The portfolio manager allows you to create portfolios and monitor your investments. On the other hand, a customizable market watch tool allows you to monitor various trading markets and securities listed in the derivatives segment and the capital market.
“Do I need to open a Demat account to start trading and invest money in shares in India?” you may ask. First, let us discuss the differences between Trading and Demat accounts. The Trading Account is the interface where you can invest in shares in the stock market. The Demat account is where the shares you bought are stored digitally.
For instance, when you want to perform an activity on your investment account, whether you buy or sell, such a transaction will be shown on the trading account. The shares that you purchased then will be stored in a Demat account. While these two accounts are different, they work side by side and are both crucial when you invest online in the share market.
How to buy shares in India?
Done right, investing in the online stock market can be rewarding. The monetary gain that can be made is the main reason for investing and buying shares by many users. “But how can I buy shares in India?” you may ask yourself.
If you are among those who are planning to start their investment journey by buying shares in India, here are some steps you can take:
- Choose a SEBI-registered broker or brokerage platform. The brokerage platform is the intermediary between you and the stock exchange company. You need to have a broker before buying or selling stocks in the stock exchange market. The brokers are the only persons or entities allowed to buy or sell stocks. Partnering with them means you are authorizing them to perform investment transactions in the stock exchange on your behalf.
- Open Trading and Demat accounts. These accounts are important so you can monitor the investments made by your broker on your behalf. They will also help you decide which stocks to buy or sell or which investment instruments to keep a close watch on for future opportunities.
- Secure a PAN card. A Permanent Account Number card or PAN card is used primarily for taxation. It is required under the Central Board of Direct Taxes (CBDT) rules.
- Work closely with your broker when buying or selling shares. Giving a broker the right to buy or sell shares on your behalf does not mean that everything is left to their discretion. Of course, as an investor, you have control over which stocks the broker should invest in and which stocks they should go off. Therefore, it is essential to maintain a close working relationship with him.
These simple rules will help you invest wisely and reduce the risk of losing your investment.
Is it profitable to invest in NSE?
NSE is only one of many stock exchange markets in India. Investing your capital in it has the possibility of helping you rake in extra income, but it also comes with risks. Before deciding to invest on this exchange, weigh things over first and make sure to consider all pros and cons. You can read the reviews of this stock exchange first and learn the basics of how to invest in the online stock market to make a decision.