loader2
Login Open ICICI 3-in-1 Account
Open ICICI 3-in-1 Account

How can we help you ?

Choose the category to find the help you need

    Announcements

    Read More
    All you need to know about Buy Now Pay Later (MTF) while investing in Stocks...
    Read More
    Stocks Back

    Buy Now Pay Later MTF

    What is the impact of Corporate action such as Bonus Issue or Stock Split on my MTF position?

    Impact of different corporate actions on MTF position

    Bonus Issue: In bonus issue, the company distributes additional shares to existing shareholders based on the number of shares already held by them.

    Suppose ABC Limited announces a bonus issue in the ratio of 1:1. It means that for every share held by existing shareholders, they will receive one additional share as a bonus.

    Stock Split: It involves dividing the existing shares of a company into multiple shares depending upon the Split Ratio. This effectively increases the number of outstanding shares in the market while lowering the price per share.

    For example, if an investor holds 100 shares priced at Rs 100 each before a 2-for-1 split, they would own 200 shares priced at Rs 50 each after the split.

    Impact on your Position: You will not be allowed to hold your MTF position during a Bonus/Split corporate action. You will receive a notification about the deadline up to which your position can be held. If you exceed the deadline, then your position will be squared off automatically.

    In majority of the cases position can be held up to T minus 2 days with T indicating the record date of the issue. If you want the advantage of the bonus/split issue, then you can convert your position to delivery and hold the stocks on to the record in your Demat accout.

    What is Margin Funding (MTF)? Where can I see my MTF stocks after buying them? What is Trigger Price in MTF? What Happens if the Stock Price Falls Below It? What are the different action options in the MTF page? Will I get the dividends paid by the company if I buy the stock in MTF? How can I convert my MTF (Pay Later) positions to delivery? How to find out the interest charged for my MTF trades? What is Trade-to-Trade segment (T2T)? What happens to my MTF position when stock goes into Trade-to-Trade segment (T2T)? What are Group 1 stocks? What happens if stock bought in MTF moves out of Group 1? What is the maximum position that can be taken in a single stock through MTF? Why are my profits from MTF are not available in current limits? Can we check shortfall amount or additional margin required for MTF position in the App? If I take multiple MTF positions in the same stock on different dates, which date will be considered for expiry? Why is my MTF position squared off/closed/sold by ICICI Direct? What are the maximum holdings/limits that can be created in MTF?
    What is the process of pledging? Will there be any charge on Pledging/Un-pledging the shares? Can I square off or convert to delivery my pledged MTF position? Why have I not received any pledge link/instruction for my MTF positions? Why is my Pledge not confirmed in MTF? What is CSMFA and why are my shares auto pledged in MTF in CSMFA?
    How does MTF Work? Who should use MTF? How to monitor your MTF positions for margin shortfall? What are the costs involved while transacting in Pay Later- MTF? What is the interest rate charged for taking position in MTF? How long can I hold my stock/positions in MTF? What is the margin required for creating positions in MTF? Is the margin required for buying the stock, same whether we use cash or limits from Shares as Margin? On what amount is the interest charged while transacting through Pay Later – MTF? Why are my MTF shares not shown in Demat Holdings on ICICI Direct? Impact of Stock Split on your MTF Position in BEML Limited Why has margin been released from my MTF position? What happens if there is a margin shortfall in my MTF position with ICICI Direct? What will happen if my outstanding MTF interest is not paid? Why can’t I convert my MTF positions to Delivery (CTD)?
    Why is interest charged on my MTF position even after I have squared off/sold it? How is Interest Charged for MTF? What is “Interest on MTF(SAM)” and why am I being charged this? Where is the MTF interest debited from? What will happen to my CAMS MTF position during Stock Split? What is the impact of Hindustan Unilever demerger on my MTF Positions?
    ✕
    Application status