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Boost your investment capacity by up to 4 times with ICICIdirect Margin Trading Funding

Worried about letting go of a good investment opportunity because of shortage of funds? Now you can capitalise on every investment opportunity and get access to surplus funds with ICICIdirect's Margin Trading Funding. Pay only a part of the total investment amount, and get funding for the remaining amount. Repay the margin amount flexibly, in a period of 365 days. Margin Trading Funding enhances your investment capacity and allows you to take larger positions by investing a small amount. With Margin Funding, you can capture profit on your stock without actually taking delivery of the stocks.

Key Features

Pay less buy more

Pay a small initial margin to buy stocks today and repay the balance amount in 365 days

Cashless trading

Sell your shares at any time during the year

Convert to delivery

Pledge existing shares as collateral to pay margins

Margin Trading

Pay a nominal interest rate* on outstanding amount. Reduce the interest rate to 8.9% p.a by subscribing to ICICIdirect Prime Plans. Click here to subscribe now.

*Interest is applicable on a daily basis

MTF Benefits

Pay less buy more

Make the most of potential investment opportunities with MTF

Cashless trading

Enhance your buying capacity by up to 4 times

Convert to delivery

Take larger positions despite low funds in your account

Margin Trading

Invest in 600+ shares listed on BSE and NSE

Margin Trading

Get dividend pay-out on Margin Trading open positions

Interest Applicable on Margin Trading positions as per different Brokerage Plans

ICICIdirect Prime Plan

14.9% – 8.9% p.a.

Lifetime Prepaid Plan

12.9% – 8.9% p.a.

I-Secure

18% p.a.

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.

MTF Shares Pledging Process

  • mobile number Icon You will receive a link from NSDL/CDSL after 6pm on “T” day
  • bank account Icon Open the link and submit your PAN number
  • validating Aadhaar Icon Select the stocks you wish to pledge and click on Submit
  • Upload documents Icon Generate and enter OTP to confirm pledge
  • Photo & E-Sign Icon 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.

Videos

MTF
How to Trade in Margin Trading Funding (MTF) at ICICIdirect

Margin Trading FAQs

Under Margin segment, we offer 2 options to square off your positions- Intraday square off and Carry forwarding. Broker mode signifies squaring off of your position on the same day by yourself or the system while Carry forwarding gives you the flexibility to keep your position active for 365 days.
Once you have an active/ open position in Margin client mode, it is visible under the Margin tab under Open Positions on the same day and under MTF page from next day onwards. Under actions, you will find an option to square off the position
In order to buy stocks under margin products, a part of the amount needs to be paid initially. This amount is termed as Initial Margin. Margin differs across stocks and is different for different products. To view Initial and Minimum margin for any stock, visit Stock List page on www.icicidirect.com. You can estimate the margin amount by calculating it as a percentage of total position value. For example, if Mr. X buys 100 shares of ABC Ltd in Margin Trading at Rs.100 per share, the total value of his purchase becomes Rs. 10,000. If initial margin applicable on ABC Ltd is 30%, it means Mr.X will only have to pay Rs. 3000 to take position in this stock and will get 1 year to back the remaining Rs. 7000.
Your position under Margin Trading follows Minimum Margin requirement. Minimum margin is that price beyond which if the current market price falls, the position gets squared off. A way to track your position's performance is by keeping a check on Trigger Price. If your stock price is reaching closer to the Trigger Price, it means that your position is incurring a loss and will get squared off on hitting the trigger price. To avoid squaring off of your positions, you can always Add Margin for Margin Trading positions from the Open Positions page.
If the position is squared off on the same day, the brokerage gets charged as per the rate under Margin segment of your selected brokerage plan. If the position is carried forward, cash brokerage is charged.
Interest is calculated on the outstanding amount of your open position, i.e., (Total Position Value - Initial Margin paid). In cases where the position is taken using demat shares, the interest is chargeable on the entire position value.
Under Open Position and Pending for Delivery pages, you can find the 'Convert To Delivery' (CTD) option under Actions column where, by paying the remaining amount, you can take delivery of the stocks. Brokerage is charged as per the Cash segment rate as per your brokerage plan
Interest is charged from T+2nd day till the end of selling settlement cycle. For ex- If you have taken a position on Monday, June 22, 2020 and carried it forward, interest will be charged from Wednesday, June 24, 2020. Now, if you square off your position on Monday, June 29, 2020, you will be charged interest till Wednesday, July 01, 2020

FAQs on Pledge Model

Shares as Margin Pledge

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

1. Login into your account
2. Go to Shares as Margin
3. Click on Deposit/Create limit and select the stock you wish to pledge
4. 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.
5. 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".

Yes there will be a charge for pledging/unpledging and invoking the Pledge.

Margin Trading Pledge FAQs

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 of taking any fresh position. The stocks will be pledged on T+2nd day.

Yes, charges will be levied for 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

Yes. You will be allowed to take fresh positions in Margin Trading. However, the shares of all these positions will have to be pledged by T+2 days to continue holding them.

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

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

Cut off time for Pledge confirmation is 12 PM on T+2nd day.

You will receive the link between 6 PM - 9 PM on T day.

For knowing the status of MTF pledge request, customers can visit the Pending for Delivery (PFD) page and check the "Pledge Status" column. Following are the various statuses which will be visible to the customer-

• Not Initiated: This will be reflected under the pledge status column when the pledge request has not been initiated by I-SEC.
• Pledge Requested: This status means that the Pledge has been initiated by I-Sec on behalf of you. You will be receiving the link from the Depositories on their registered mobile number and email id.
• Customer Confirmed: Once you have confirmed the OTP and once ISec receives the confirmation of the same from NSDL the status will be reflected as "Customer Confirmed". Please note that in this stage the shares are still not credited there to your account. You need not do anything after this.
• Pledge Created: This status will be reflected after the shares are credited to your account and are pledged in favor of I-Sec.
• Pledge failure: This status may come if you have not taken any action and the link has expired on the execution date. Pledge failure may also happen due to technical issues.
• Customer Pledge Rejection: This will happen if the Pledge has been rejected by you using the link provided by NSDL. We will update the status as "Customer pledge rejection" once we get the status back from NSDL.

General Queries

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

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