Margin Trading Funding - MTF Facility by ICICI Direct

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

Enter Stock Name

Quantity to Buy

Current Market price

You can buy times more stocks with your fund by using Margin Funding(MTF)

Your Fund

+

ICICI Direct Funding

=

Your Investment in Stocks

Place Order

You can buy stocks with small (margin) amount

You can use your stocks instead of cash as margin

Balance amount is funded by ICICIdirect to complete your investment

Interest as low as Rs.27 per day on 1 lakh is charged on funded amount

Key Features

Buy more with limited funds

Enhance your buying power up to 4 times

Lower interest rate

As low as 9.69% p.a on funded amount

Go cashless

Use Shares as margin to make optimum use of market opportunities

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.

M & M

6.99%

Target Return

2,906.35

Current Price

3,306

Target Price

3,040

-

3,090

Buying range

4.3 times With Margin Funding

Buy

Axis Bank

7.98%

Target Return

1,071.85

Current Price

1,285

Target Price

1,165

-

1,190

Buying range

4.3 times With Margin Funding

Buy

Bharat Electron

9.52%

Target Return

290.85

Current Price

345

Target Price

302

-

315

Buying range

4.3 times With Margin Funding

Buy

Punjab Natl.Bank

8.10%

Target Return

100.77

Current Price

120

Target Price

106

-

111

Buying range

4.3 times With Margin Funding

Buy

Persistent Sys

8.51%

Target Return

6,368.7

Current Price

6,598

Target Price

6,050

-

6,080

Buying range

4.3 times With Margin Funding

Buy

Mishra Dhatu Nig

9.94%

Target Return

345

Current Price

420

Target Price

368

-

382

Buying range

4.3 times With Margin Funding

Buy

L&T Finance Ltd

10.52%

Target Return

136.48

Current Price

210

Target Price

184

-

190

Buying range

4.3 times With Margin Funding

Buy

Canara Bank

9.67%

Target Return

99.61

Current Price

136

Target Price

121

-

124

Buying range

4.3 times With Margin Funding

Buy

Lemon Tree Hotel

8.82%

Target Return

153.36

Current Price

148

Target Price

131

-

136

Buying range

4.3 times With Margin Funding

Buy

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.

Visit “Shares as Margin”
Click on "Pledge & Create"
You will receive a link
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	0.07	9.69%
₹4,999	0.1	9.69%
₹2,999	0.15	16.49%
₹999	0.22	20.49%
₹299	0.25	20.49%

Lifetime Prepaid Plan

Plan	Delivery Brokerage(%)	MTF Interest rates (p.a)
₹ 1,00,000	0.07	9.69%
₹50,000	0.12	16.49%
₹25,000	0.15	16.49%
₹12,500	0.18	20.49%
₹5,000	0.22	20.49%
₹2,500	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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Videos

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Want to Buy Stocks in MTF?

Its easy , follow 3 simple steps

Select the stock

Select the stock you want to buy with MTF
Click on MTF

In the buy page, click on MTF, then enter the Quantity and price details
Confirm your order

Check the order details and swipe to place the order.

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 onT+1 day for stocks bought in Margin Funding(MTF).

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?

Yes. You will need to Pledge your shares to hold positions in Margin Trading beyond T day.

In case you do not confirm the Pledge for the shares bought under Margin Funding (MTF) then your positions will be squared off on T+1 day.

2. What is the process of pledging my shares bought under Margin Trading as per the new Pledge Mechanism?

If you have taken a fresh position in Margin Trading, you will receive a link on your registered Mobile number and E-mail id after 6PM. 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 9:30 PM on T day (same day). The stocks will be pledged on T+1 day

3. Will there be any charge on Pledging/Un-pledging the shares?

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.

4. What will happen if I want to square off my position for which I have pledged the shares and what if I want to convert it to delivery (CTD)?

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.

5. I have taken a position in Margin Trading today but I have not received any link from NSDL/CDSL till now. What should I do?

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

6. What will happen if I do not pledge my shares with in the given time?

IF you do not pledge the shares with in the given time, your position will be auto squared off on T+1 day. Once your position is auto squared off, you will not be able to buy that stock in MTF on same day. You can buy it again on next day.

7. Why I am not able to place overnight order in MTF?

Once you buy a stock in MTF, Pledge link is triggered in the evening. Once the pledge is triggered, you won’t be able to place overnight MTF /Cash order in that particular stock until it is pledged.

If you pledge within the given time i.e 10PM of T day, your pledge will be created on T+1 day & you will be able to take fresh position in that stock.

8. Restrictions/ Impact of Net settlement in a brief:

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)

9. What will happen if I sell my pledged stock & buy again in Margin Funding (MTF) on same day?

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 you will be required to pledge only the difference QTY
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) 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.

3. What is collateral/pledged shares or shares as margin(SAM)?

You can use your existing shares to create limits which can be used to buy shares in MTF product.

4. What is Converted 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. CTD option is available in Stocks tab –> Open Positions –> MTF (Pay Later)/Intraday.

5. How is CTD done in Intraday/MTF and if done, what is the brokerage levied for that?

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.

6. Are we allowed to sell shares bought on previous day in MTF?

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

7. How do we sell/ square off position in MTF?

Once you have an open position in MTF, it is visible under the Intraday 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.

8. What happens when we don’t square off shares bought in MTF?

You will continue holding the shares till expiry date or take delivery of shares within the specified time.

ICICI securities will square off the trade on expiry date. This is subjected to change / review by ICICI securities Ltd from time to time.

9. Do I receive dividend on stocks bought under MTF?

Yes. Your dividend will be credited to your linked bank account.

10. What is Margin required and how do we calculate initial and minimum margin?

In order to buy stocks under margin products, a part of the total 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 he can payback the remaining Rs. 7000 before the expiry date.

11. What type of margins are allowed?

You can use cash or pledge shares/shares as margin(SAM) for buying stocks in MTF.

12. What happens if the margin is less than the required margin?

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 under open position – MTF/Margin. 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.

13. How is brokerage calculated on MTF?

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 whereas if the position is carried forward, cash brokerage is charged.

14. How and on what amount is Interest calculated?

Interest is calculated on the outstanding amount of your open position, i.e., (Total Position Value - Initial Margin paid). In case, where the position is taken using shares as margin/pledge shares (SAM), the interest is chargeable on the entire position value.

15. Interest is charged till what date?

Interest is charged from T+1 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 Tuesday, June 23, 2020. Now, if you square off your position on Monday, June 29, 2020, you will be charged interest till Tuesday, June 30, 2020.

16. What is the rate at which interest is charged ?

Interest is charged at 0.056% per day or 20.49% per annum. However, the same can be reduced to as low as 0.027% per day or 9.69% per annum with Select Prime and Prepaid plans.

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.

2. What is the process of creating fresh pledge request in case of Shares as Margin (SAM) facility?

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.

3. What will happen if I do not select all the stocks while providing confirmation on the link received from NSDL/CDSL?

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.

4. I have not received any link from NSDL/CDSL till now. How do I provide OTP confirmation for the Pledge request?

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

5. How can I track my margin pledge request?

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

2. What are the applicable Pledge charges for both Margin Trading and Shares as Margin?

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	29

Note: Both of the above charges include Depository Pledge Charges of Rs. 5.

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.