RULES OF SHARE MARKET

The Share Market world offers numerous investment opportunities for your money to grow up. You can trade or deal in the market as per your choice and convenience.

There are some best trading apps in India that make trading simpler and easier for the user . You need not meet the broker to buy and sell the shares, as online trading allows you to do the same from any part of the world. 

Online trading requires your mobile phone and useful internet. 

Besides, there are two types of trading that you can carry on. They are Intraday trading and Delivery trading. 

• Intraday Trading – It is also called Day Trading. You can buy and sell the stocks and other financial instruments on a similar day in this kind of trade before the stock market closes. 

• Delivery Trading – Here in this trade, you can exceed stocks’ possession for a long time, like weeks, months, and years. 

When you buy the stocks, they are sent to your Demat account for further trading. You can sell them whenever you want. 

RULES OF STOCK MARKET TRADING

In the share market, most people come to earn maximum money. They think that within months their money will get doubled. So, they spend all of their money in the stock market, and even some people borrow money from their dear ones to invest.

But what happens? All money gets destroyed, and they get demotivated because earning money in the share market is not that easy.

There are many ups and downs in the share market.

So we are not able to understand which shares we should purchase, hold, and sell. There is no fixed formula and shortcut for earning profits in this market.

Therefore, today we will talk about some of the basic rules of Share Market that will provide you ideas of how you can be a part of SEBI and its exchanges to some extent. So let us begin!!

Eligibility:

Investing in stocks is the way to earn passive income, but when it comes to how to join share market, one has to check a few eligibility criteria.

Here are the details for you:

(1) The individuals who wish to trade on any exchange (NSE or BSE) have to register themselves with the SEBI of India.

(2) Individuals who can take part in SEBI involve;

Registered firms

Limited liability partnership

Bodies corporate

Companies defined in the companies act, 1956

Entities that have permission to trade on the exchange under the SEBI, 1957.

(3) Besides, the individuals who are the trading members of the TRM segment are also eligible to trade on an exchange.

(4) An Individual is not eligible to be a trading member of the exchange who has not

completed 21 years

is engaged in any other business other than that of securities.

has committed an act that results in winding up the person under the provisions of the law.

is a provisional liquidator and official liquidator.

has been bankrupt.

has been involved in any fraud and dishonesty.

has been declared as a defaulter by any other stock exchange.

(5) No individual is eligible to take a trading member of the exchange.

If he has not been a partner with any stock exchange for two years or more. Besides, who has not worked as an authorized clerk, assistant, or apprentice to a member of any recognized stock exchange for the same time period.

An individual who is a representative partner with any member of an exchange and also enters into transactions but not with his name but the name of the member under whom he is working.

An individual who is not successful in the established business of a deceased or retiring member (father, brother, uncle, close relative) of the exchange.