In my last post, we found “What is a Share?“. But here is the big question: Can you just walk into a pizza shop and ask the cook for 1 share? Spoiler: No. He will probably just give you a confused look and a menu.
To buy those “pieces” of a company, you need to enter the Digital Market. Here is exactly how it works for us students.
The Digital Mall (The Exchange)
Instead of a physical market, there are two giant “Digital Malls” in India: the NSE and the BSE.
What are NSE and BSE?
Think of India’s stock market as having two giant, competing Shopping Malls. You can buy your “pizza slices” (shares) from either one.
1. BSE (The Heritage Mall)
- Full Name: Bombay Stock Exchange.
- It is the oldest mall in Asia (started in 1875!).
- Specialty: It has a huge variety. Over 5,000 companies are listed here.
- Famous Sign: You’ll hear people talk about the SENSEX. This is just a score based on the top 30 biggest companies in this mall. If the Sensex is “up,” the mall is doing well.
2. NSE (The High-Tech Mall)
- Full Name: National Stock Exchange.
- It started later (1992) and is the most modern. It was the first to make everything 100% digital in India.
- Specialty: It is the most popular. Even though it has fewer companies (around 2,000), almost all the big daily trading happens here because it’s super fast.
- Famous Sign: Its famous score is the NIFTY 50. This tracks the top 50 giant companies in India.
Which one should a student use?
The Short Answer: Both!
Most big companies (like Reliance, Zomato, or Tata) are listed in both malls. When you use your broker app (like Groww or Zerodha), it will often show you the price for both.
As a student starting small, it doesn’t really matter which one you pick. The app will usually pick the best one for you automatically.
Sometimes a share is ₹100.05 on NSE and ₹100.00 on BSE.
- Think of these as the Amazon of Stocks.
- You don’t go there; your phone connects to them instantly.
2. The Digital Locker (Demat Account)
If you buy a digital share, you can’t put it in your physical pocket. You need a Demat Account.
- It is exactly like Google Photos or Google Drive.
- When you buy a share, it stays safely in this “Digital Locker” so you don’t lose it.
3. The Delivery Guy -Broker App
Obviously, as you know, you cannot buy directly from the “Digital Mall.” You need a middleman like platform called a “Broker“.
- These are the apps you see on the Play Store (like Groww, Zerodha, or Upstox).
- The app is like Zomato, as you order food on zomato, similarly you order shares here. You pick the share you want, the app goes to the market, buys it for you, and puts it in your “Locker.”
The Top Choice for Students: Groww (or your preferred app).
Follow these 4 simple steps:
- Download & Register: Search for the app on Play Store/App Store. Sign up using your mobile number and email.
- Verify Your Identity (KYC): You will need your PAN Card and Aadhaar Card. (Don’t worry, these apps use high-level security like a bank).
- Digital Signature: You’ll have to take a quick “selfie video” and sign your name on your phone screen to prove it’s really you.
- Link Your Bank: Connect the bank account you use for UPI. This is how you will add your ₹100 to buy that first share.
Pro-Tip for Students: Make sure your Aadhaar is linked to your mobile number. You will get an OTP (One Time Password) to sign the documents digitally. If your number isn’t linked, you’ll have to do it the old-fashioned way with physical papers—and nobody has time for that!
Is This Expensive for Students?
This is the part that shocked me:
- Cost to open: Most apps are FREE for students.
- Paperwork: You don’t need to go to a bank. You just need your Aadhaar and PAN card. It takes 10 minutes—less time than waiting for a real pizza!
The Reality Check:
When you first open these apps, they look like a scary video game with flashing red and green numbers. Don’t panic. Those are just prices moving up and down. You don’t need to understand every number today; you just need to know how to open the door.
Disclaimer: I am a student sharing my learning journey. This is not financial advice. Please do your own research before investing your money.
