Till a few years ago, the stock market was considered to be the domain of big cities and rich people, but now the situation is changing rapidly. The scope of investment has increased due to the spread of mobile connectivity, internet and digital banking in villages. Today, any farmer, shopkeeper, student or working person from the village can invest in the stock market right from the comfort of his home. However, before getting started it is important to understand how the markets work, who protects investors’ interests and what the risks are. In India, the ‘Securities and Exchange Board of India’ (SEBI) oversees the stock market and protects investors by making rules to keep the market transparent and safe. Let us now see how farmers can invest in the stock market.
After all, what is the stock market?
Whenever a company needs capital to expand its business, it offers a small part of its shares to the general public. These parts are called “shares”, and anyone who buys a share becomes a partial owner of that company. If the company’s business grows and performs well, the share price may increase, thereby benefiting the investor. Conversely, if the company performs poorly or incurs losses, the investor may suffer financial losses.
How can rural farmers start investing?
Nowadays, there is no need to go to a big city or a stockbroker’s office to invest in the stock market. With the help of a smartphone and the internet, anyone can start investing online in just a few minutes. All it requires is a bank account, PAN card, Aadhaar card, mobile number linked to Aadhaar, a smartphone and internet connection. Using these documents you can open a demat and trading account online.
What is demat account?
Just as a bank account keeps your money safe, a demat account keeps your purchased shares safe in electronic format. Today, platforms like Groww, Zerodha and Upstox, as well as many banks, offer online demat account opening using video KYC.
