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Margin Trading Funding (MTF)

Never miss a good investment opportunity with Margin Funding (MTF)

  • Buy stocks with a small (margin) amount
  • Use your stocks instead of cash as margin
  • Balance amount is funded by ICICIdirect to complete your investment
  • Interest as low as Rs 27 per day on 1 lakh is charged on funded amount

Check how Margin Funding(MTF) works while you buy stocks

 

Key Features

ICICI direct

Buy more with limited funds

Enhance your buying power up to 4 times

ICICI direct

Lower interest rate

As low as 9.69% p.a on funded amount

ICICI direct

Go cashless

Use Shares as margin to make optimum use of market opportunities

ICICI direct

Exclusive handpicked research

Get Benefits from our exclusive research for you

Research recommendation

'Margin Funding Picks' exclusive research recommendation for Margin Product. Now you can use these calls to buy stocks under MTF with a medium term horizon.

7.89%
936.9
998
900
-
925
7.84%
304.95
316
285
-
293
8.92%
657.45
708
635
-
650
9.67%
119.12
136
121
-
124
9.31%
269.65
305
271
-
279
8.86%
409.75
430
385
-
395
11.11%
320.25
360
316
-
324
12.03%
569.7
605
525
-
540

To read full report, click here

How to invest with zero funds

Now you can generate instant limits with your existing shares available in your Demat A/C without selling them using Shares as Margin facility. These limits can be used to buy stocks in MTF or trade in FNO. It's simple hassle free process to generate limits.

  • Login Icon Visit “Shares as Margin”
  • Go to Mutual Funds Click on "Pledge & Create"
  • Choose Investment You will receive a link
  • Choose Investment Get limits in your account

Interest applicable on Margin Funding Positions

ICICI Direct Prime Plan

Plan Delivery Brokerage(%) MTF Interest rates (p.a)
9,999
lifetime
0.07 9.69%
4,999
lifetime
0.1 9.69%
2,999
lifetime
0.15 16.49%
1,999
lifetime
0.18 16.49%
999
lifetime
0.22 20.49%
299
anual
0.25 20.49%

Have a Question in mind?

Interest will be calculated on the funded amount for the number of days you hold position in MTF. The number of days would start from the exchange pay-in date for the settlement of the respective transaction and charged till the date the funds are actually received. The interest shall be charged per day basis including non-working days.

Interest will be charged for funded amount or Shares as Margin amount blocked against your MTF positions for the number of days you hold.

No, ICICIdirect don’t charge any minimum interest amount.

Default interest rate for your position is charged at 0.06% per day.

You can choose from the prime plan and prepaid plan available to reduce interest rate as applicable for respective plan.

Videos

MTF
PAYLATER IN STOCKS Hear what customers have to say on Margin Funding

MTF
What is Margin Funding

MTF
Webinar on Margin Funding in English

MTF
Webinar on Margin Funding (MTF) in Hindi

Want to Buy Stocks in MTF?

Its easy , follow 3 simple steps

  • lock-in of 3 years

    Select the stock

    Select the stock you want to buy with MTF

  • lock-in of 3 years

    Click on MTF

    In the buy page, click on MTF, then enter the Quantity and price details

  • lock-in of 3 years

    Confirm your order

    Check the order details and swipe to place the order.

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IMPORTANT

With the introduction of Pledge Model in September 2020, it is now mandatory for customers to pledge their shares purchased under Margin Trading. Pledging is mandatory for creating limits against demat shares as well

How to Pledge

You will receive a link from NSDL/CDSL after 6pm on “T” day

Open the link and submit your PAN number

Select the stocks you wish to pledge and click on Submit

Generate and enter OTP to confirm pledge

Pledge confirmation done

You can check the status of your pledge request on the Open Positions page. Pledge will be created onT+1 day for stocks bought in Margin Funding(MTF).

FAQs

  • Pledge FAQs
  • Margin Funding
  • Pledge Model (shares as Margin Pledge)
  • General Queries

Yes. You will need to Pledge your shares to hold positions in Margin Trading beyond T day.

In case you do not confirm the Pledge for the shares bought under Margin Funding (MTF) then your positions will be squared off on T+1 day.

If you have taken a fresh position in Margin Trading, you will receive a link on your registered Mobile number and E-mail id after 6PM. On opening this link and entering your PAN number the page will display a list of all those stocks you bought on that day under which you have taken position under Margin Trading product. You will need to follow below 2 steps:

Step 1: Open the link received from the Depositories, enter PAN and select stocks that you want to proceed with Pledging

Step 2: Click on 'Generate OTP' and authenticate your Pledge by entering the OTP received on your Mobile number and you are done.

You will need to Pledge your shares Within 10 PM on T day (same day). The stocks will be pledged on T+1 day

Yes, there will be a charge of Rs. 20 + GST for Pledging / Unpledging of MTF Shares in accordance with depositories NSDL and CDSL. These charges are applicable on a per-ISIN basis in each instruction.

You will be able to square off your Margin Trading positions after doing EDIS mandate. In this process, you will be required to authenticate the transaction by confirming the MPIN & OTP received from your depository. This mandate will be valid for that day.

e-DIS mandate can be given as follows:
On the Order Verification page, you will be redirected to your depository e-DIS mandate page to complete two-factor authentication by entering MPIN and OTP

In case of CTD option, you will be able to do Convert to Delivery (CTD) for your Margin Trading position from Open Positions page by using convert to delivery option.

If you have taken a fresh position in Margin Trading, you will receive a link from the Depositories at the end of day. If you do not receive any link, then-

Click here for the link if you have an NSDL account

Click here for the link if you have a CDSL account

You can buy stocks by paying an initial small amount called margin amount and rest of the outstanding amount will be funded by ICICI Securities. You can sell/square off the stocks anytime or convert the stocks to delivery (CTD) within the expiry date. Interest will be charged for the funded value.

In other words, MTF is leveraged investment product which allows you to buy shares with cash or collateral/pledged shares(SAM).

Unlike for a 'Cash buy' order, you do not have to pay the full order value for MTF order.

MTF positions will have a default validity period of 30 days and the same will be auto renewed with 30-day intervals subject to a maximum validity (Expiry) of 360 days from the date of purchase.

MTF positions will have a default validity period of 30 days and the same will be auto renewed with 30-day intervals subject to a maximum validity(Expiry) of 360 days from the date of purchase.

You can use your existing shares to create limits which can be used to buy shares in MTF product.

When a stock is bought in MTF, you can either hold it or pay the full amount and take delivery of the stock in your demat account. CTD option is available in Stocks tab –> Open Positions –> MTF (Pay Later)/Intraday.

Under Open Position-Intraday/MTF, you can find the 'Convert To Delivery' (CTD) option under Actions column wherein, by paying the remaining outstanding amount, you can take delivery of the stocks.

CTD can be done on the same day or after the pledge confirmation(As per new sebi guideline w.e.f Sep 2020) for MTF position.

No extra charges will be levied for CTD except if CTD is done on same day where delivery brokerage will be applicable for the trade.

As per SEBI's new guidelines, for the purpose of providing securities as margin, the existing Shares as Margin process is getting replaced by the mandatory Margin Pledge process (via OTP authentication) in Depository system, i.e., you will have to pledge shares in favour of ICICIdirect to avail securities limit.

Similarly, in case of buying shares under Margin Trading facility, you will have to pledge those shares in favour of ICICIdirect to continue holding the positions under Margin Trading.

This new process has been implemented to ensure the safety and security of your shares.

You can create a fresh pledge request by following the below steps

  • Login into your account
  • Go to Shares as Margin
  • Click on Deposit/Create limit and select the stock you wish to pledge
  • After placing the pledge request, you will receive a link on your mobile number and email id registered with the depository to validate the Pledge.
  • To confirm, you will have to provide OTP authentication on that link. OTP will be sent to your Mobile number and E-mail id registered with the depositories.

you do not select all stocks while providing pledge confirmation, your unselected stocks will not get pledged and therefore, the limits generated against those stocks will become zero.

If you have neither received any link on your mobile number nor on email id from CDSL/NSDL, please check whether your correct Mobile number and E-mail id is registered with the Depositories. If your contact details are correct and you still haven't received the link-

Click here for the link if you have an NSDL account

Click here for the link if you have a CDSL account

You can track your pledge request from the Request Book under Shares as Margin Section. Once your pledge request is successfully confirmed through OTP authentication the status in the Pledge Book will reflect as "Confirmed".

A. Please follow below process to check your existing mobile number and email id details: Login to Linked ICICI Bank Internet Banking > Investments and insurance > Demat > View Personal Details

B. To change your mobile number and email with the depository, follow below process: Login to Linked ICICI Bank Internet Banking > Investments and insurance > Demat > Service requests > Registration for Mobile Alerts facility

Type of Instruction (Per ISIN in an instruction) Pledging Charges in Rs.
Margin Trading Pledge : MTF Pledge Creation/Closure/Invocation 20
Shares as Margin Pledge Creation/Closure/Invocation 20

Disclaimer

ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. ( Member Code : 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Ms. Mamta Shetty, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investments in securities market are subject to market risks, read all the related documents carefully before investing. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund, Corporate Fixed Deposits, Bonds, IPO, NPS, Wealth Management, Corporate Services, Portfolio Management Services, Alternate investment funds, Tax planning, Succession planning and Loans related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. Please note, Insurance related services are not Exchange traded products and I-Sec is acting as a corporate agent to solicit these products. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Please note Brokerage would not exceed the SEBI prescribed limit.

Global Investment Platform is offered by ICICI Securities in collaboration with interactive brokers. Any complaint / dispute pertaining to the same would not be entertained by Stock Exchanges. Involvement of ICICI Securities Ltd. is restricted to Referral Only. ICICI Securities Ltd. does not offer this product directly to customers. Client’s details will be shared with third party stock broker (Interactive Brokers Group, Inc.) with expressed consent from clients. All dealings including KYC will be executed by third party stock broker (Interactive Brokers Group, Inc.) directly with client and ICICI Securities Ltd. will not incur any personal financial liability.

One Click Portfolio and Premium Portfolio related services are offered under Research Analyst license of I-Sec. Any complaint / dispute pertaining to the same would not be entertained by Stock Exchanges.

Margin Trading is offered as subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017 and the terms and conditions mentioned in rights and obligations statement issued by I-Sec.

Cloud Order feature is offered by ICICI Securities. Any complaint / dispute pertaining to the same would not be entertained by Stock Exchanges.

ICICI Securities Ltd. acts as a referral agent to ICICI Bank Ltd. for loan against securities related services & the loan facility is subjective to fulfilment of eligibility criteria, terms and conditions etc.