How to Invest in Indian Shares Market? Very big question. Here you will find simple answer – what to do or not. Big money and quick profits are attracting investors to the stock market since its beginning. Unfortunately, making money with equities is not always easy. Especially if you are a beginners in the investments, you need to be very cautious about your moves. Though no thumb rules exist for profit-making, certain qualities like patience and good discipline gained by avoiding greed can help you to gain more and lose less.

So what is the right way of investment in Indian share market? We have shared here some golden tips in form of Do’s and Don’ts for investors in the equity market.

List of Do’s and Don’ts for Invest in Shares Market

We are sure this set of rules will help you make your overall profit scenario quite successful.

Do’s in Indian Share Market

  1. Deal with the brokers who are holding a valid registration of SEBI. This ensures the best safety of your investments.
  2. Fill up all your details completely and accurately in the Know Your Client application form.
  3. Instead of depending upon on your broker entirely, remain alert on the genuineness of the transactions and verify any suspicious transaction using the official BSE website.
  4. Make sure that you are risking only in proportion with your risk bearing capacity.
  5. A good research of the company before investing is a key to success. Research sources can be other vendor’s databases, business magazines, and official websites of stock exchange.
  6. File your complaint against any BSE listed firm only after confirming the jurisdiction.
  7. Make sure that you are holding money before you decide to buy and securities before you decide to sell in the stock market.
  8. Always make monetary transactions with the intermediaries only through the valid and normal banking channels.
  9. Keep copy of all the documents you send to registrar or broker or intermediary with the record of the date and purpose.
  10. Always be sure about obtaining the contract notes from your broker.

DON’Ts in Indian Share Market

  1. Never get carried away by greed and do over investment.
  2. Avoid concentration of your investments. Instead, try to diversify your portfolio. Hence, a downside in price of one or two shares will not affect you too much.
  3. Do not deal with unregistered brokers or sub-brokers.
  4. Never keep stock dormant and unattended after buying. Keep tracking updates on the company regularly.
  5. Don’t follow blindly the updates of media and other rumors without your own research to avoid hasty investments.
  6. Do not over invest in very limited number of sectors.
  7. Avoid signing any documents with any intermediary without understanding the conditions properly.
  8. Never get carried away with the expectations of high returns and guaranteed returns on your investments.
  9. Don’t make investment on the basis of the general approvals or registration certificates of governmental agencies owned by the company.
  10. Don’t compromise on getting documents from any trading member, intermediary, broker, and registrar related to any transaction.

These are general rules to be followed to invest thoughtfully in the Indian share market. However, keep track of the price movements and use your experience and judgement skills as well. If you are a newbie investor, give more time to research the stocks you are selecting before making any investment.


Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.

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