Stock Market & IPOs
To start in the Indian share market you need a demat and trading account with a SEBI-registered broker, your PAN and a linked bank account. Trades settle on T+1, so shares you buy today land in your demat account on the next trading day. If you're new, a Nifty 50 index fund is the simplest first step.
Picking single stocks can come later, once you can read a balance sheet.
This page links our guides on the demat account, choosing a stock broker and the 2026 buyback rule, with plain explainers on the Nifty, Sensex and IPOs below.
Key Highlights
- Nifty 50: 50 large NSE companies, free-float weighted, base 1,000 on 3 November 1995, reviewed every March and September (NSE Indices).
- Sensex: 30 large BSE companies, base 100 in 1978-79, free-float weighted since 1 September 2003 (BSE).
- Settlement: every security in the equity segment settles on T+1 since 27 January 2023. SEBI allowed T+1 by circular SEBI/HO/MRD2/DCAP/P/CIR/2021/628 (7 September 2021), the exchanges phased it in from 25 February 2022, and the last batch moved on 27 January 2023 (NSE circular, 26 December 2022; BSE release, 27 January 2023).
- IPO listing: shares must list within three working days of the issue closing (T+3), mandatory for issues opening on or after 1 December 2023 (SEBI circular, 9 August 2023).
- Trading risk: 93% of individual F&O traders lost money between FY22 and FY24 (SEBI, 23 September 2024).
Start with these guides
Demat Account: A Comprehensive Guide
What a demat account does, what it costs and the documents you need.
Top Five Stock Brokers in India 2026
Zerodha, ICICI Direct, Angel One, Upstox and Sharekhan side by side.
SEBI Open Market Buyback From 1 August 2026: What It Means For Retail Investors
Why you can't apply to this kind of buyback, and what to check.
Top Investment Mistakes and Investment Tools People Should Know While Investing
The errors that cost new investors the most.
SIP Calculator for Rs 10,000 Per Month: How Much Wealth Can You Build?
The steady way into equity if stock picking isn't for you.
Calculators and tools
See what a monthly index fund SIP could grow to.
Raise the SIP each year and compare the corpus.
Free float, T+1, IPO and other market terms.
The assumptions behind every number on this site.
SIP, EMI, FD, PPF and more money tools.
How many days does an IPO take to list?
| Day | What happens | What you do |
|---|---|---|
| T | Issue closes | Last day to bid |
| T+1 | Basis of allotment approved by the stock exchange, before 9 pm | Allotment status follows |
| T+2 | Money unblocked for unsuccessful bids by 4 pm, shares credited to demat by 6 pm | Check demat and bank |
| T+3 | Trading starts on NSE and BSE | Shares can be sold |
Frequently asked questions
What is the Nifty 50?
It's the flagship index of the National Stock Exchange. It tracks 50 large, liquid companies, weighted by free-float market capitalisation, with a base value of 1,000 on 3 November 1995. NSE Indices reviews the constituents twice a year, in March and September. When people say "the market fell today", they usually mean this index.
What is the Sensex and how is it different from the Nifty?
The Sensex is BSE's benchmark of 30 large companies, with a base of 100 in 1978-79. The Nifty 50 holds 50 stocks on NSE. Both are free-float weighted and mostly move together, because the biggest companies sit in both. For an index fund, the choice between them matters far less than the expense ratio.
Do I need a demat account to buy shares?
Yes, for listed shares, along with a trading account from a SEBI-registered broker. Our demat account guide covers charges and documents.
When do shares bought today reach my demat account?
Indian equities settle on T+1. Buy on Monday and the shares are credited on Tuesday, provided Tuesday is a trading day. The whole market moved to T+1 on 27 January 2023. Sale money also arrives one working day after the trade.
What is IPO GMP and should I trust it?
GMP, or grey market premium, is the unofficial price at which IPO shares change hands before listing. It's not run or regulated by SEBI or the exchanges, and nobody publishes audited numbers. A high GMP can vanish by listing day. Treat it as gossip about demand and decide on the company's prospectus instead.
How does IPO allotment work for retail investors?
Under T+3, the basis of allotment is fixed one working day after the issue closes, shares hit demat accounts the next day and listing follows on the third day. Under SEBI ICDR Regulation 49(4), each retail applicant gets at least one minimum lot if shares allow. When there are more retail applicants than lots, SEBI's General Information Document says the winners are picked by draw of lots. Say 10,000 lots are reserved and 2,00,000 people apply: your chance is about 1 in 20, however many lots you bid for.
What is a PE ratio?
Share price divided by earnings per share. A Rs 500 stock earning Rs 25 a share trades at 20 times earnings. A dedicated guide is coming.
Is intraday trading a good idea?
For most people, no. SEBI found 71% of individual intraday traders in the cash segment lost money in FY 2022-23.
What is a share buyback?
A company buys back its own shares. Our buyback guide covers the open market route SEBI restored from 1 August 2026.
Expert take: Ashutosh Joshi
"Buy the index before you buy a stock. If you can't beat a Nifty 50 fund over five years, the honest answer is to stop picking."
"I don't look at GMP when I apply for an IPO. I read the risk factors and the use of proceeds in the prospectus, and that usually settles it."
"Ignore anyone quoting tomorrow's Nifty level. Nobody knows it, and a ten-year SIP doesn't need it."
All Share Market articles
Every guide on stocks, IPOs, brokers and market rules, newest first.
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