Importance of stock market in India and the challenges faced:
Share market is the place where the share holders make money based on the fact that the share that is held by them hold the good price in the stock market which has its own challenges accordingly. However, the share, in the company would result with the right amount of profits, if there is the right gauge on the fluctuations of the market of the company’s shares.
There are two main exchanges in India set up for the purpose of trading the stocks and shares. One is the Bombay Stock Exchange and the other one is National Stock Exchange. Apart from these there more than hundred stock exchanges, however, the above two is the important ones who assist in trading.
The requirements and steps on how to invest in share market in India for beginners:
The first important step before investing in the stock market in India would be to open a Demat account. This account can be opened in any financial institution or the banks that would represent the trading of the shares and stocks from the stock market. There has to be a complete documentation of the stocks that you invest on by surveying the information either through the brokers or by yourself based on the indexes that the company implies.
The trading through broker can be done and the trading account that has been opened for the trading of the shares in a single account. There should be always a decision made based on the loss that might occur while investing and for the same a plan has to be kept in hand in order to face the fluctuation that is faced by the market.
The decision of buying the shares should be decided by you. You have to confirm on the buying of the shares accordingly and the same should be bought from the companies which are already established. This would be ideal for the starters in the stock market. The best way to deal with the stock market is to avoid getting influenced by the buying practices of others. The attitude towards the market while investing makes a lot of difference.
The main things to keep in mind while investing in shares in India:
Those who are registered with the stock exchanges and act as mediators in the stock market should be contacted in order for the trading of the shares in the stock market.
There has to be investment done based on the documents that have to be analyzed and confirmed that you are registered as a client. This is important and hence, the Xerox of the same has to be collected and kept for reference. This is for your own safety so that there is a proof that states that you are the client. The notes of contract should be taken from the broker and the same can be counter checked with the web site of the BSE in order find out its relativity.
The banking features are very user friendly and helpful for the transactions that are done for the trading of the shares and the same has to be stuck with so that there are no issues relating to the payment or receipt of amount structure. Also the details of the company have to be analyzed and known completely, that would include the company’s current propaganda etc. This is necessary as there might be changes done by the company in the course of letting the shares out in the market.
The documents that are required to be looked into before you register yourself as a client should be clearly read and understood perfectly. This is necessary as it forms a part of the investment criteria. The investment technique has to be based on ‘low risk’ carrying attitude. This helps the market to be understood much more appropriately and be cautious on the sudden fall of the prices of the shares.
The photo copies of the documents that are sent to the Companies who are trading and the Registrars, also the members who are trading should be kept with you for your reference. On the whole, lot of care has to be taken to safeguard your investment so that there is no loss in the same.
Investment in stock market in India is less risky if known about the dos and don’ts of investment.
Above all, the stocks should be held before they are put for sale. This is necessary as without the investment percepts (the securities), the trading cannot be done. The follow up needs to be done on the documents that have to be received within the prescribed time. The information relating to the trading source has to be intimated with clarity. There should be information that is shared through documents so that they remain the proof relating to the acceptance of the same.
The care taken to safeguard the investments should be the primary concern:
We have to be sure that the broker is registered or not in order to be sure that you do not end up trading with a non-registered broker who would dupe with the money invested. If at all adjudication has to be done, the same should be done with the Regional Investor Service Centre that has accurate structure that is geographically explained. There are always risks involved in the investment in share market and hence, the statements that say “sure return” should not be believed and invested, rather the market structure that prevails for the company has to be analyzed and invested accordingly. We also have to make sure that no documents that are to be collected should be left out, on the faith that you know the person and you would not get cheated.
Always the concerned persons and the required authorities have to be approached to clear the doubts and also to make sure that the investment is done on the right track. This will make your securities safe and also you relieved from the fact that you are not investing in the wrong investment. You can always get the information from the web sites of the companies how they are working and also from the websites of BSE and the NSE to know the details relating to the factors that would invade the security in the market. The sources like the above can be also contacted through their toll free numbers to know the trading that might be done through fraud and how to safeguard one from such occasions. We should not get carried away from the promises that would not be affective enough to be completed. Rational thinking should be done before you invest in the securities.
Selection of the brokers and investment done should be based on note that is obtained from the broker for reference. This should be obtained within a day or twenty hours from the time you traded. It is better to deal with only brokers who are registered with the BSE. There should be a form that has to be filled with the broker so that the same which is considered as the client registration form can be used to undertake the safety when investing as this form says the formation of the trading in the most legitimate way. This would in turn allow you to earn profits without the fear of getting cheated and the risk of losing the money.