SHARE MARKET
Understand the share market before you enter it.
How shares, demat accounts, IPOs and F&O work — and the risks — explained in simple words. For learning only: we do not give stock tips.
The basics, in simple words
Demat and trading account
A demat account holds your shares electronically with a depository (NSDL or CDSL). A trading account is used to buy and sell them on the exchange. Shares always stay in your own name.
Buying and holding shares
When you buy a share you own a small part of a company. Prices move every day with the company's results and the market mood. Long periods of ups and downs are normal.
IPO
An IPO is when a company sells shares to the public for the first time. You apply through your demat account using UPI (ASBA) — the money is only blocked, and is debited only if shares are allotted.
Futures and options (F&O)
Contracts based on a share or an index. A small margin controls a large position, so losses can be large and fast. Not suitable for most people — read the risk note below.
Pre-IPO and unlisted shares
Shares of companies not yet listed on an exchange. Prices are not discovered on an exchange, they can be hard to sell, and the risk is higher.
Commodities
Gold, silver, crude oil and other commodities traded on exchanges such as MCX. Prices depend on world markets and the rupee, and can move sharply.
Before you invest in shares
- Keep an emergency fund and enough health and term insurance first.
- Invest only money you will not need for the next few years.
- Spread your money; do not put everything in one share or one sector.
- Never trade on tips from social media, WhatsApp groups or strangers.
- Never share your password or OTP, and never let anyone trade in your account for you.
- Check every contract note and statement you receive from the exchange and depository.
Source: SEBI press release, 23 Sep 2024
Loan against shares
It is possible to borrow against shares you hold, without selling them. Loans are given by lenders, subject to their approval and terms. If share prices fall, the lender can ask for more margin or sell the pledged shares.
Ask us →Common questions
Do you give stock tips?
No. We are not a SEBI-registered research analyst or investment adviser, so we do not give buy or sell tips or calls. We help you understand how the market works.
What is the difference between NSDL and CDSL?
Both are SEBI-registered depositories that hold shares in electronic form. Your demat account is with one of them through a depository participant.
How do I check the shares in my name?
You can see all your holdings in the Consolidated Account Statement (CAS) from NSDL or CDSL. Links are on our Useful links page.
What does "upper circuit" or "lower circuit" mean?
Exchanges set a daily price band for many shares. When a share hits the top or bottom of that band, it is said to hit the upper or lower circuit.
Where can I complain about a market-related issue?
First contact the broker or company concerned. If it is not resolved, you can use SEBI's SCORES portal, and then the Online Dispute Resolution (ODR) portal.
Talk to us
Have a question about the share market, your demat account or an IPO? Share your number and our team will call you to explain.
Or WhatsApp us on 097253 53500Thank you! We have your request.
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Want to talk now? WhatsApp usInvestments in the securities market are subject to market risks; read all related documents carefully before investing. The content on this page is for education only. We do not provide stock tips, research recommendations or assured returns.