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

 

ICICI direct

You can buy stocks with small (margin) amount

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.27 per day on 1 lakh is charged on funded amount

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.

L&T Finance Ltd
10.52%
137.74
210
184
-
190
4.3 times With Margin Funding

Canara Bank
9.67%
94.46
136
121
-
124
4.3 times With Margin Funding

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
anual		 0.07 9.69%
₹4,999
anual		 0.1 9.69%
₹2,999
anual		 0.15 16.49%
₹999
anual		 0.22 20.49%
₹299
anual		 0.25 20.49%
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Have a Question in mind?

1. How is interest calculated?

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.

2. How is interest charged?

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

3. Is there any minimum interest amount charged?

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

4. What is default interest rate?

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

5. How can I reduce my interest rate?

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

Videos

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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 mandatory to pledge shares purchased under Margin Trading Facility.
  • From November 08, 2024 , shares bought in MTF (Margin Trading Facility) will be auto-pledged.

FAQs

  • Pledge FAQs
  • Margin Funding
  • Pledge Model (shares as Margin Pledge)
  • General Queries
1. I trade in Margin Trading (MTF Buy) product. Will there be any impact of this Pledge Mechanism on my trading activity?

With effect from 8th November, 2024, shares bought in MTF (Pay later) will be auto-pledged. There will be no impact on trading activity.

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 buy any stock in Margin Funding(MTF), then you won’t be able to place the following orders in that particular stock for the day.
eATM sell order
Cash Buy today sell tomorrow (BTST) order
Spot sell order

If you place the following orders in any stock, you won’t be able to buy that stock in MTF on that day.
Cash sell order
eATM sell order
Cash Buy today sell tomorrow (BTST) order
Spot sell order

If you buy any stock in delivery or convert any stock to delivery from margin mode (intraday), then you won’t be able to place MTF sell order in that stock for the day.

If you place MTF sell order in any stock, then you won’t be able to place the following orders in that stock for the day
Cash buy order
Convert to delivery(CTD) from margin mode (intraday)

1. If QTY bought = QTY sold then no pledging will be required, as the bought quantity will be auto adjusted against sold quantity.
For ex: you sell 50 quantities of stock X from your MTF open position page and then again buy 50 quantities of stock X in MTF on same day, then pledging won’t be required as the bought quantity will be adjusted against sold quantity as the quantity is same for both

2. If QTY bought < QTY sold then no pledging will be required, as the bought quantity will be auto adjusted against sold quantity.
For ex: you sell 50 quantities of stock Y from your MTF open position page and then again buy 30 quantities of stock Y in MTF on same day, then pledging won’t be required as the bought quantity will be adjusted against sold quantity

3. If QTY bought is > QTY sold, then the difference will be auto pledged.
For ex: you sell 50 quantities of stock Z from your MTF open position page and then again buy 60 quantities of stock Z in MTF on same day, then you will be required to pledge only 10 shares (QTY bought – QTY sold) will be auto pledged as the balance quantity will be adjusted against sold quantity

1. What is Margin Trading Facility, MTF?

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.

2. How long can I hold my MTF position?

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.

View More
1. What is the Pledge Model?

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".

1. How can I confirm/change my mobile and email id registered with the depository?

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.

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