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

 

ICICI direct

You can buy stocks with small (margin) amount and hold it for 365 days

ICICI direct

You can use your stocks instead of cash as margin.

ICICI direct

Balance amount is funded by ICICIdirect to complete your investment

ICICI direct

Interest as low as Rs.22 per day on 1 lakh is charged on funded amount.

Key Features

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Buy more with limited funds

Enhance your buying power up to 4 times

ICICI direct

Lower interest rate

As low as 7.9% p.a on funded amount

ICICI direct

Go cashless

Use Shares as margin to make optimum use of market opportunities

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Interest applicable on Margin Funding Positions

ICICIdirect Prime Plan

Plan Delivery Brokerage(%) MTF Interest rates (p.a)
299
anual
0.27 14.9
999
lifetime
0.22 12.9
1,999
lifetime
0.18 10.4
2,999
lifetime
0.15 8.9
3,999
lifetime
0.12 8.9
4,999
lifetime
0.10 7.9

Lifetime Prepaid Plan

Plan Delivery Brokerage(%) MTF Interest rates (p.a)
50002,500 0.25 12.9
12,0005,000 0.22 12.9
25,00012,500 0.18 11.4
50,00025,000 0.15 8.9
1,00,00050,000 0.12 8.9
1,50,00075,000 0.09 8.9
NEW 1,00,000 0.07 7.9

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 0.05% per day.

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

Videos

MTF
What is Margin Funding

MTF
Webinar on Margin Funding in English

MTF
Webinar on Margin Funding (MTF) in Hindi

Its easy , follow 3 simple steps

  • lock-in of 3 years

    Select MTF

    Go to Equity place order page & Select MTF Buy

  • lock-in of 3 years

    Choose Stocks

    Select the trade you want to make- the exchange, the stock & price,; Click BUY NOW

  • lock-in of 3 years

    Confirm your order

    Click on proceed to complete the buy transaction- You just traded with MTF! It’s that simple

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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 on T+2nd day. When the status shows 'Pledge Created', it means your shares are now pledged.

Note: After the 'T' day market hours, 'Convert To Delivery' option will only be available after your shares are successfully pledged

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+2 days. In case you do not confirm the Pledge for the shares bought under Margin Client mode/Flexi cash product then your positions will be squared off on T+3rd day.

If you have taken a fresh position in Margin Trading, you will receive a link on your Mobile number and E-mail id registered with the Depositories at the end of day, 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 T+2 days 9.00 AM of taking any fresh position. The stocks will be pledged on T+2nd 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 as per the existing process. No OTP authentication will be required to square off your pledged positions.

In case of CTD option, you will be able to do Convert to Delivery (CTD) for your Margin Trading position from Open Positions page on 'T' Day before the end of market hours. However, CTD will not be allowed post T day market hours till the successful confirmation of Pledge in favor of ISEC (Client Securities Margin Funding Account) which will happen on receipt of shares in your demat account.

This would mean that CTD against Margin Trading shares bought on T day will not be allowed post market hours from T day onwards till T+2 days. It will only be allowed from T+3rd day onwards i.e. post confirmation of Pledge and in case of clearing holiday it may be allowed from T+4 day onwards or later depending on continuous clearing holidays.

You will be able to check the status of your unpledged Margin Trading shares in Open Positions > MTF page. The positions for which shares are pending to be pledged will be highlighted in red color.

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. Stocks bought under this product can be held for T+365 days(T= being Trade date). You can sell/square off the stocks anytime or convert the stocks to delivery (CTD) within 365 calendar days. 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.

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 Equity tab - open position tab - MTF/Margin.

Under Open Position-Margin/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.

Yes, you can sell 100% of the shares bought on previous day in MTF under open positon - MTF.

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): Mr. Anoop Goyal, 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.