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Many times investors see an opportunity to trade but face the issue of immediate arrangement of funds in order to buy stocks. This shortage of funds leads to an opportunity lost.

We, at ICICIdirect, understand this pain and hence, we bring to you a facility with which you can use your own shares to create limits to trade when you are short on funds. This facility is Shares as Margin.

With Shares as Margin, you can generate instant limits with your existing shares available in your Demat A/C.

How does Shares as Margin Work?

All you need is to visit "Shares as Margin" section on our Website or Mobile App and then click on "Pledge & Create limit" to check the stock wise limits which can be generated by pledging your shares. With this feature now on your mobile app, you can now generate limits against your shares on the go.

BENEFITS

ICICI direct

There is no need to wait to buy stocks till funds are gathered

ICICI direct

Simple, hassle free process to generate limits

ICICI direct

Zero Interest* for using this limit for trading in Intraday Products

*Not applicable for customers active in ICICIdirect NEO Brokerage Plan

ICICI direct

The shares can be released from pledge anytime from “Pledged Securities” Section

New Margin Guidelines and Peak Margin

For Cash segment intraday trades, since December 01, 2020 till February 28, 2021 we have charged minimum margin of 5% in the 1st Phase. In the 2nd Phase applicable from March 01, 2021 till May 31, 2021 we charged 10% margin on intraday trades. In the 3rd phase, applicable from June 1, 2021 till August 31st 2021, we charged 15% margin for Intraday trades. 4th (Final) Phase, starting September 1,2021 shall require us to charge 20% margin for Intraday trades.

For Derivatives, Since December 01, 2020 till February 28, 2021 we have charged minimum margin on intraday trades at 25% of SPAN+ELM in the 1st Phase. For the 2nd Phase, which started from March 01, 2021 we have charged minimum 50% of SPAN+ELM as margin for intraday trades from June 1, 2021 charge 75% of the SPAN+ELM or higher. In phase 4 i.e. from September 1, 2021, we are collecting it will be 100% of the applicable margin will for Intraday trades in F&O.

Let us with an example understand the initial margin required in the upcoming phase (4th Phase of Peak Margin). Initial Margin is the Margin that gets blocked by the broker at the time of initiating the trade and is calculated as a % of the trade value.

Regulatory Margin currently for Equity Intraday products of Margin Buy/Sell & Margin Plus Product is 20% and for F&O, it is SPAN + ELM for Intraday Products of Future Plus, Future Plus Stop Loss and Option Plus.

In the 1st Phase, the initial margin for Intraday Margin & Margin Plus was 25% of this regulatory margin which is 5%. For F&O, 25% of SPAN + ELM.

In the 2nd phase, the initial margin for Intraday Margin & Margin Plus was 50% of this regulatory margin which is 10%. For F&O, 50% of SPAN + ELM.

In the 3rd phase,the initial margin for Intraday Margin & Margin Plus was 75% of the regulatory margin which is 15%. For F&O, 75% of SPAN + ELM

Now in the 4th Phase, starting September 1, 2021, the initial margin will be 100% of the regulatory margin which is 20%. A minimum of 20% or any higher margin will be applicable for all the stocks in Margin Buy/Sell and Margin Plus. For F&O, 75% of SPAN + ELM

Stocks New Margin w.e.f. 1st September 2021
Where current initial margin is less than 20% 20%
Where current initial margin is more than 20% No change. Existing margin will be applicable

Eventually from September, 2021 onwards the initial margin required for Margin Buy/Sell and Margin Plus will be as per regulatory minimum margin which is 20% or higher.

For F&O, the following example for Intraday Product of Option Plus* can be referred to:

Strike Price SPAN + ELM per lot / Premium per lot Phase 1 Margin Phase 2 Margin Phase 3 Margin (From June 1) Phase 4 Margin (From Sep 1)
NIFTY Option Buy 14,750 7500 1,875 3,750 5,625 7,500
NIFTY Option Sell 15,100 1,60,000 40,000 80,000 1,20,000 1,60,000

*Above numbers are for example purpose only and actual numbers may vary according to SPAN and ELM / premium at that point of time

Watch our Video to know more

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