MTF allows you to buy a stock by paying only a fraction of its price (margin) while the rest of the amount will be funded by ICICI Securities.

Stocks bought this way can be held for a period of 360 days. Interest will be charged on the funded amount provided to complete the transaction.

All MTF orders can be managed through the Open Positions page.
This can be found under Stocks > Open Positions.

When you buy a stock through MTF, it will initially be shown in Stocks > Intraday > Open Positions. The stock will continue to be shown here until the end of the market hours.

After you complete the pledge process through the link sent on Email or SMS. The stock will appear under MTF(Pay Later) page from next day onwards

This will be the place where all your pledge confirmed shares will be shown till they are expired or when the order is squared off.
All margin data or actions of your MTF positions can be accessed from here. It is important to keep the Trigger Price in mind. Trigeer Price is the price below which system will square off your order.

There are three different options under the Actions Column.

1. Sell
2. Add Margin
3. Convert to Delivery

Sell: The Sell option allows you to sell/square off/exit your position in the stock. You can select the quantity and the type of order(Limit/Market) and click on Square off to exit your position.

Add Margin: When the LTP( Last Traded Price) of the stock goes below the Trigger Price specified for the stock, the system will start to automatically close that position to the extent of shortfall in margin amount.
To prevent this you can select Add margin option and enter the amount you want to add to the position. This will reduce the Trigger Price of the position and ensure that your position is not automatically squared off.

Covert to Delivery(CTD): 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 before the expiry date.
Clicking on the 3 dots under the Action column shows the Convert to Delivery option. In this action, by paying the remaining outstanding amount you can take delivery of MTF position to Demat account.

CTD can be done on the same day before 3:30 pm or after the pledge confirmation for MTF position next day.

Every position taken by you in MTF will have a Trigger Price. The trigger price is calculated based on the initial margin price at which you bought the stock.
When the price of the stock (LTP) falls below the trigger price, system will check for any idle funds allocated to equity. If no funds are present, it will automatically start to square off the MTF position in the stock.

Yes, you will be eligible to receive any dividend paid by the company as long as the stock was held by you on the specified record date.

MTF position can be converted to delivery from the MTF open positions page. Navigate to MTF(Pay Later) page by using the path: 

Stocks > Open Positions > MTF (Pay Later)

In this page you can find the details of all MTF position. 

Please follow the steps to convert your stock to delivery.

           1. Click on the 3-dot next to add margin present under the Actions Column.
           2. Enter the quantity that has to be converted to Delivery.
           3. Click on Convert Now

Please Note that you will be charged Rs 20+ GST as unpledge charges when you convert your stocks from MTF to delivery.

The details of the interest being charged can be found in the MTF open position page. Navigate to MTF(Pay Later) page by using the path Stocks > Open Positions > MTF (Pay Later)

If you hold MTF positions, click on Interest Details option to view interest details.

If you do not hold MTF positions, click on Interest On Outstanding Settlement Obligation to view the historical interest details.

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.

Trade to Trade: Exchanges move stocks to Trade-to-Trade (T2T) segment to prevent speculation and volatility of a stock. For stocks placed in this segment, Intraday trading will be prohibited and only delivery mode of transaction will be allowed.

The list of stocks moving to T2T segment are released by the Exchange.

Impact on your Position: As per our risk policy, stock placed in this segment cannot be held in MTF. We will inform you the time by which you can either square off your position or convert it to delivery. Post the prescribed time, your position will be closed by ICICIdirect.

Starting October 21, 2024, the maximum limit for creating MTF positions in a single stock will be ₹10 crore.

Please note that if you take a position over ₹10 crores limit, the following message will be shown: "EM not allowed for stock as Client wise stock wise position limit is breached." 

As per the regulatory guidelines, effective from Friday 23rd Aug 2024, any profit earned from trades in Intraday, Bracket and Pay Later (MTF)) will be available for use in your current limits only after the closure of market hours. The said limits can be used for trading on the next trading day (T+1 day) or for placing overnight orders.

For example, If you conducted trades on August 19th, 2024 where you bought stocks worth 50,000 in MTF and sold them at 60,000 on 23rd August. This means that you have generated a profit of ₹ 10,000 on the trades. Under the revised guidelines, ₹ 10,000 profits will be added in the limits in your trading account after-market hours on 23rd August, 2024 and same can be used for trading only on August 24th, 2024 (T+1 day).

As per the regulatory guidelines, effective from Friday 23rd Aug 2024, any profit earned from trades in Intraday, Bracket and Pay Later (MTF)) will be available for use in your current limits only after the closure of market hours. The said limits can be used for trading on the next trading day (T+1 day) or for placing overnight orders.

For example, If you conducted trades on August 19th, 2024 where you bought stocks worth 50,000 in MTF and sold them at 60,000 on 23rd August. This means that you have generated a profit of ₹ 10,000 on the trades. Under the revised guidelines, ₹ 10,000 profits will be added in the limits in your trading account after-market hours on 23rd August, 2024 and same can be used for trading only on August 24th, 2024 (T+1 day).

Additional Margin required / Shortfall amount isn’t available in the app but you can check it in the website(www.icicidirect.com).

Goto: Stocks > Open Position > MTF 

Stock wise details of Shortfall amount or Additional Margin will be shown.

Pledging is mandatory process for stocks bought in MTF to be held for more than a day.

You need to pledge the stock by 10 PM on trade day in order to avoid closure of your positions.

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 pledged Margin Trading positions.

e-DIS mandate can be given as follows (For e-DIS customers): 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. This will provide mandate for the stock which lasts for a day.

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 after your pledge is confirmed.

With the rollback of Direct Payout of securities, shares bought under Margin Trading Facility (MTF) will have to be manually pledged by 10PM on the purchase date. If the pledge is not confirmed by 10PM, the same positions will be squared off.