Dummies Guide to invest in Indian Bourse: How to Trade?

"Why is the man (or woman) who invests all your money called a broker?"
George Carlin (1937 )

Step I - Apply for PAN

Yes, the government of India has made it mandatory for everyone to submit a PAN(Permanent Account Number), before investing into Shares. So, apply for it soon.

Click here to apply for PAN Card.

Step II - Select a Brokerage Firm

To buy or sell shares online, you need a reliable broker or sub-broker who will carry out the transactions in a successful way A good broker is one who makes it easier and profitable for you to trade on the Bourse. Therefore, it is a canny idea to put some time and effort, researching a broker for you.The broker is like a mediator between you and the Stock Market. These days a lot of brokerage firms also provide helpful tips on investing in the stocks. You can also ask your friends who can give you some advice on selecting a broker. Remember, that these brokers charge some brokerage, i.e, some amount of money on the value of your transactions. So, negotiate wisely. Another important factor is to check if the broker is registered with SEBI.
Some brokerage firms are listed below -

Step III - Buying and Selling Shares

Next step is to open an account with your selected Brokerage firm. All transactions are done online these days. You are required to pay money to your broker immediately upon getting the contract note/confirmation for purchase/sale of shares. There different ways in which you can buy and sell shares online and it differs among different brokers. So please check with your broker. Generally, brokers come to your home and guide you through the entire process.