Frequently Asked Questions(FAQ)
1. ICICIdirect e-invest Account
2. Becoming A Customer
3. Existing ICICI Customers
4. Bank Account/Demat Account
5. New ICICIdirect e-Invest Customers
6. Online Investing
7. Settlement Of Trades
8. Margin Product  
9. Cash on Spot  
10 Buy Today Sell Tomorrow (BTST)
11. Trading In Futures  
12. Digitally Signed Contract Note  
13. Corporate Benefits
14. Non Pari Passu(NPP) Shares
15. Research And Other Resources
16. Password
17. Security
18. Accessing Bank Account And Setting Limits
19. Access To Website
   
   



ICICIdirect e-invest Account

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What is unique about ICICIdirect e-invest account?

Your ICICIdirect e-Invest account is more than a brokerage account. It offers you a unique 3-in-1 feature, which integrates your Brokerage, Bank and one or more Demat accounts. This means that you can buy and sell shares and forget about the hassles of settlements. Transfers of shares from/to your Demat account and transfer of money from/to your Bank account take place automatically with no paperwork. Online investing is just a click away and settlements is no longer a problem.

 
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What is the 3-IN-1 concept?

ICICIdirect e-Invest account allows you to integrate your ICICIdirect Brokerage Account, your Bank account and one or more Demat accounts. Currently the Demat Account has to be opened with ICICI Bank Ltd as the Depository Participant (DP) and the Bank Account has to be opened with ICICI Bank Ltd. as the Banker. You can choose the branch closest to you to open your bank account.

 
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Can I have multiple Demat Accounts linked to e-invest account?

Yes, you can link multiple Demat accounts to your e-Invest accounts with a maximum of 5 accounts.

 
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Can I have multiple Bank accounts linked to my e-invest account?

No, as of now you can only link one Bank account to your e-Invest account.

 
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If I already have a Demat/Bank account with other Bank or Depository?

To avail of the advantage offered by the integration of the brokerage, Bank and the Demat account, all the three accounts will have to be opened with ICICI group.

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Becoming A Customer
 

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Who is eligible for this service?

All resident Indians and non residents (NRI) residing in Gulf Co-operation Council (GCC) countries of United Arab Emirates,Saudi Arabia, Bahrain, Kuwait, Oman and Qatar are eligible to avail of this service.

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How do I become an ICICIdirect customer?

You can open an ICICIdirect e-Invest account by filling a single application form. This form will help you open an ICICIdirect Brokerage Account along with a Bank Account and one or more Demat accounts as required.

 
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How do I request a form?

You can request our representative to visit you (Select Cities Only) by registering online through our website. You could also visit any of the following ICICI Bank Branches / Centres,where our trained personnel help you in becoming ICICIdirect e-Invest customer. Alternatively you can request us for a form by sending us an e-mail at helpdesk@ICICIdirect.com and our CSE will contact you to complete the initial account opening formalities.

 
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I have sent in my application, what happens next?

Your application will be processed and you will be informed once your application is accepted and all the required accounts are set up. In case your application is not processed because of lack of some details, you will be contacted by our representative or by mail.

 
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How do I know my application has been accepted?

As soon as your application is accepted, we will inform you by e-mail and mail.. In case, you login and your application has been accepted, you will be prompted to change your password.

 
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Do I have to maintain any minimum balance in my Bank Account?

Accounts opened after 31st Dec 2000 need to maintain a quarterly minimum balance of Rs. 5000/-.

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Existing ICICI Customers
 

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If I already have a ICICI Bank account and a ICICI Demat account, can I use these accounts for online investing?

Yes, you just need to tell us the account details and we shall link up your existing accounts with ICICIdirect e-Invest account for online investing. You can link up only an existing Bank account or only one or more Demat account(s) or both the existing Bank account and Demat Account(s). However, at present, your ICICI Bank account on which you have opted for Quantum Optima cannot be linked. Anyway, you can always opt to open a new Demat and Bank account with your ICICIdirect e-Invest account.

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Bank Account/Demat Account
 

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What type of Bank Account can I use with my e-invest account?

You will need an ordinary savings account with ICICI Bank Ltd for your e-Invest account. You can specify the account in the form and it will be linked with your e-Invest account. In case you do not have a ICICI Bank account, an online banking savings account can be opened with an e-Invest account.

   
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How frequently will I be able to know the status of my accounts?

The status of your Bank, Demat and e-Invest account shall be available to you completely online 24 hours a day through the Internet. You will be able to access all details regarding your orders and trades on the website. You will be able to see the results of your trade reflected in your Bank and Demat account on the very day of the settlement, without waiting for the statements from the DP and the Bank.

   
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What is a ICICI Bank Online Banking account?

ICICI Bank's Online banking service is known as Infinity. The Bank account opened with your e-Invest account is an Infinity Bank account. Infinity service can be accessed on the website www.icicibank.com with a secure Logon Id and Password. Apart from allowing you to access your transaction history and current balance, Infinity allows you to transfer money from one account to another and also make online bill payments in Mumbai.

If you have opted for a new online bank account of have opted to link up your existing saving account (which was not registered with Infinity), your Logon ID and Password will be mailed to you separately. However, this does not stop you from trading on ICICIdirect.com.

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New ICICIdirect e-invest Customers
 

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I am a new customer and have just been informed that my ICICIdirect e-invest account has been set up. How do I make my first trade?

Please check our comprehensive section on Trading Guide

 
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I want to buy some shares . I do not have any money in my Bank Account. What do I do?

Please deposit a cheque/cash in your Bank Account by filling the pay-in slip. In case of a cheque, the money should come into your Bank account as soon as the cheque is cleared. Once you have funds in your bank account, you need to allocate the required amount for trading. Alternatively you can sell some shares from your Demat Account in the Cash Segment and use the money to purchase the shares you want to buy. The amount of money required before placing a buy order or a margin sell order would depend on the value of the order.

 
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I have deposited a cheque but I am still not able to place a purchase order:

There could be two reasons for this either the cheque is not cleared or you do not have adequate Trading Limit.

Please check your Bank balance to find if you have adequate money in your Bank account. It is possible that there could be some delays in clearance of the cheque. Please contact your ICICI Bank Branch to find the reason.

Even if you have adequate money in your Bank account you will get limit only after you allocate some money for trading or investment.

 
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Can I withdraw the amount allocated for trading?

The way you can allocate funds for trading, you can always reduce the amount allocated by you for trading to the extent that the amount allocated has not been blocked on account of orders placed by you. Once any amount is deallocated, it can be withdrawn from the bank.

 
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Can I borrow or get a line of credit against my Demat Account?

Currently, we are not offering this service. But, we are evaluating ways to add to our product range. We would appreciate if you could give us feedback on the facility you want.

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  Online Investing
 
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On which exchanges will I be able to buy and sell shares?

ICICIdirect offers its customers execution capability on the National Stock Exchange of India Ltd. (NSE) and Stock Exchange of Mumbai (BSE).

 
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What kind of orders can I place?

You can place both market and limit orders.

Limit Order is an order to buy or sell securities in which you specify the maximum price per unit in case of a Buy order and the minimum price per unit in case of a Sell order. The actual transaction can be at a price more favourable than the price specified.

Market Orders have different interpretations for both NSE and BSE.
Market Orders in NSE : This is an order to buy or sell securities at the best price obtainable in the market at the time it is matched by the exchange. Therefore, chances of its getting executed are better. In case of market orders for NSE, all market orders placed which are not executed become limit orders at the last traded price. Where a market order is not executed fully, it becomes a limit order for the balance quantity at the last traded price.

Market Orders in BSE : Explanation

Market orders can be placed only during market hours (i.e. when the Exchange is open for trading)

 
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Which shares will I be able to buy and sell?

You will be able to buy and sell all shares in the Cash Segment that are traded in the compulsory dematerialised form on the exchanges. As of date, there are more than 850 such shares. These shares are the most heavily traded shares on the exchanges and account for over 90% of the market capitalisation. More and more shares are being added to this category every month by the regulatory authorities. Of these shares, you may place orders for select shares in the Margin Segment.

 
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Do I get online confirmation of orders and trades?

Yes, you get online confirmation of orders and trades - the status of any order is updated on real-time basis in the Order Book. As soon as you place your order they are validated by the system and sent to the exchange for execution. The entire process is fully automatic and there are no manual interventions.

 
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Is it possible that an order is accepted by the exchange but a trade does not take place against it? Is an order always executed for the full quantity? Is it always executed at one price?

Very much. In case of a limit order, it might remain totally unexecuted if there are no matching orders. For example, if you place a sell order for 100 shares @ Rs. 100 per share. It might remain totally unexecuted if there are no buy orders for the share for a price of Rs. 100 or more. Further, an order can get executed for any quantity less than or equal to the order quantity. On part execution, the original order is converted into an order for the balance quantity against which another trade can happen. Since these are different trades, it is possible that the trades are executed at different price.

In case of market orders placed on NSE, even a market order might remain unexecuted if there are no matching orders. In such cases, the unexecuted portion of the market order is converted into a limit order at the last traded price for the balance quantity. For example, when the last traded price of a share was Rs. 100, if a market order is placed to sell 100 shares, the sell order will be matched against all limit orders for buying the shares. In case there are no or insufficient orders for buying 100 shares, the unexecuted market order is converted automatically into a limit order to buy sell 100 shares at a price of Rs. 100 (the last traded price). In case the order was partly executed and the last execution took place at Rs. 95, the price of the limit order for the balance quantity would be Rs. 95.

In case of market orders placed on BSE, all buy market orders go to the Exchange with the price of the best offer and all sell market orders go to the exchange with the price of the best bid offer. In case at that point of time it is found that that particular bid or offer is no longer present in the exchange this market order gets cancelled by the exchange. In case of part execution of market order, the remainder order gets converted into a limit order at the last executed price.

 
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Can I modify my order?

Yes, you can modify an order any time before execution. You can do this by accessing the Order Book page and clicking on the hyperlink for 'Modify' against the order which you wish to modify. However, you cannot modify your order while it is queued with the exchange, i.e., confirmation is awaited from the exchange for the acceptance of the placement of any order or any modification/cancellation request. In case the order is already partly executed, only the unexecuted portion of the order can be modified.

 
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Can I cancel my order into the system?

Yes, you can cancel an order any time before execution. You can do this by accessing the Order Book page and clicking on the hyperlink for 'Cancel against the order which you wish to cancel. In case the order is already partly executed, only the unexecuted portion of the order can be cancelled.

 
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Can I enter orders after the trading hours? What happens to such orders?

Yes, you can enter limit orders after trading hours. Orders placed after trading hours are queued in the system and are send to the exchange whenever the exchange next opens for trading. In the Order Book, the status of such orders is shown as 'Requested'.

 
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Do I need to have money before buying of shares?

Yes, you need to have money in your Bank account before placing an order. Alternatively if you have sold some shares, the sale proceeds can be used to buy the shares you want.

 
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Can I go short?

Yes, you can go short in the 'Margin Segment'However, such Sell positions need to be closed out before the specified time before the end of the settlement. You cannot go short in the Cash Segment'. Here, you can sell only those shares which are there in your demat account.

 
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How will I be informed of my trade execution?

The trade executions are confirmed online and the trading history is updated immediately. In the Order Book, the status of each order is updated on a real-time basis. On execution, the status changes to 'Executed' or 'Part Executed'. You can view details of the trade executed by clicking on the link. In the Trade Book you will be able to see all the trades that have taken place. On clicking the link of Order Ref. No. you will be able to see details of the trade execution. In addition, you will receive e-mail confirmations. You can choose to receive the e-mail confirmation either for each trade when it is executed or a single one for all trades at the end of the day. The contract note will be send to you by mail at the end of the day.

 
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What is a contract note?

Contract note is a statement of confirmation of trade(s) done on a particular day for and on behalf of a client. A contract note is issued in the prescribed format and manner, establishing a legally enforceable relationship between the member and client in respect to the trades stated in that contract note. Contract notes are made in duplicate, where the member and client both keep one copy each.

 
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Can I trade on margin?

You can trade on margin on select stocks.

 
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What are GTC, GTD and IOC orders ?

A Good Till Cancelled (GTC) order remains in the system until the trading member cancels it. However, the system cancels this order if it is not traded within a number of days parameterised by the Exchange. A Good Till Days/Date (GTD) order allows the user to specify the number of days/date till which the order should stay in the system if not executed. The maximum number of days for which the GTC/GTD order can remain in the system is notified by the Exchange from time to time after which the order is automatically cancelled by the system. The days counted are inclusive of the day/date on which the order is placed and inclusive of holidays. An Immediate or Cancel (IOC) order allows the user to buy or sell a security as soon as the order is released into the system, failing which the order is cancelled from the system. Partial match is possible for the order and the unmatched portion of the order is cancelled immediately.

At ICICIdirect.com, all orders accepted are valid for GTD. Any unexecuted order pending at the end of the trading session for the day gets expired.

 
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What is a Disclose Quantity (DQ) order?

Normally, the order quantity is disclosed in full to the market. An order with a Disclosed Quantity (DQ) condition/attribute allows the Trading Member to disclose only a part of the order quantity to the market. For example, an order of 1000 with a disclosed quantity condition of 200 will mean that 200 is displayed to the market at a time. After this is traded, another 200 is automatically released and so on till the full order is executed. DQ (Disclosed Quantity) should not be less that 10% of the Order Quantity and at the same time should not be greater than or equal to the Order Quantity.

 
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What is a Stop Loss order ?

A Stop loss order allows the client to place an order which gets activated only when the market price of the relevant security reaches or crosses a threshold price specified by the investor in the form of 'Stop Loss Trigger Price'. When a stop loss trigger price (SLTP) is specified in a limit order, the order becomes one which is conditional on the market price of the stock crossing the specified SLTP. The order remains passive (i.e. not eligible for execution) till the condition is satisfied. Once the last traded price of the stock reaches or surpasses the SLTP, the order becomes activated (i.e. eligible for execution by being taken up in the matching process of the exchange) and then on behaves like a normal limit order. It is used as a tool to limit the maximum loss on a position.

Examples :

Stop Loss Buy Order
'A' short sells Reliance shares at Rs 325 in expectation that the price will fall. However, in the event the price rises above his buy price 'A' would like to limit his losses. 'A' may place a limit buy order specifying a Stop loss trigger price of Rs 345 and a limit price of Rs 350. The stop loss trigger price (SLTP) has to be between the last traded price and the buy limit price. Once the market price of Reliance breaches the SLTP i.e. Rs 345, the order gets converted to a limit buy order at Rs 350.

Stop Loss Sell Order
'A' buys Reliance at Rs 325 in expectation that the price will rise. However, in the event the price falls, 'A' would like to limit his his losses. 'A' may place a limit sell order specifying a Stop loss trigger price of Rs 305 and a limit price of Rs 300. The stop loss trigger price has to be between the limit price and the last traded price at the time of placing the stop loss order. Once the last traded price touches or crosses Rs. 305, the order gets converted into a limit sell order at Rs. 300.

Important
Please note that in a buy order the SLTP cannot be less than the last traded price. This is treated as a normal order because the condition that the last traded price should exceed the stop loss trigger price for a buy order is already satisfied. Similary, in case of a stop loss sell order the SLTP should not be greater than the last traded price for the same reason.

 
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What are price bands?

The exchanges have fixed price bands for all t securities within which they can move within a day i.e +-20%. In case of scrips on which derivatives products are available there is a price freeze of +/-20%.Orders outside the minimum and the maximum of the range are not allowed to be entered into the system. However in case of few specific scrips, from time to time the exchange has fixed price band of less than +/-20%.The previous day's closing price is taken as the base price for calculating the price bands.

In case a member wants to execute a trade beyond +/-20% freeze (derivative scrips) then he will have to request the exchange to relax the price freeze for his particular order.

 
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  Settlement Of Trades
 
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What is a Settlement cycle?

Please refer Learning Centre.

 
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If I have purchased a share, do I have to take delivery?

No you can choose to sell the share before the end of settlement cycle. However once the settlement cycle is over you have to take delivery by paying for it.

 
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If I have sold, do I have to give delivery of shares?

No you can choose to buy the share before the end of settlement cycle. However once the settlement cycle is over you have to give the delivery of shares from your Demat account.

 
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I buy a share, how will the payment be made and how will I get the shares?

The payment will be made on the Pay-In day which depends on the settlement cycle and the exchange. The shares received from the exchange will be automatically transferred to your Demat Account. The money required for purchase will be transferred from your Bank account. A similar process takes place when you sell the share.

 
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I have bought some shares but some amount has not been deducted from my Bank Account?

The amount will be deducted from your bank account at the time of settlement. Hence, generally you can expect the amount to get debited from your bank account on T+2 day, the day before actual settlement at the exchange which is T+3.

At times, however, the share may be in 'No Delivery' and hence the payment may need to be made after the 'No Delivery Period' is over, which might be 1-2 weeks away. The date on which amount is to be deducted from your account can be checked from the 'Cash Projection' page.

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I have bought some shares but shares have not come into my demat account?

The shares will come into your demat account at the time of settlement. Hence you can expect the shares to come into your Demat account on Pay-Out of securities (i.e. T+3). In case you do not receive the shares, it may be due to the stock being in 'No Delivery' period . In this case the shares will come from the exchange after the 'No Delivery' period is over which could be 1-2 weeks away. The date on which the shares are to be credited to your Demat Account is indicated on the Order verification screen which comes up on submitting a Sell order. Alternatively, it is possible that the shares may not have come from the exchange because of short delivery by the counter party (selling broker).. In this case, the exchange conducts an auction to buy the shares (to the extent delivered short by any broker) from the open market and the shares may be received a few days later. If the shares are not received in an auction also, the exchange suitably charges penalty from the person liable to deliver the shares. You are suitably compensated and the consideration is remitted to you as soon as it is received from the exchange.

 
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I have sold some shares but the payment has not come into my bank account?

The amount will be come into your bank account at the time of settlement. Hence, generally you can expect the amount to get credited to your bank account on T+3.

At times, however, the share may be in 'No Delivery' and hence the payment may be received only after the 'No Delivery Period' is over, which might be 1-2 weeks away. The date on which amount is to be credited to your account can be checked from the 'Security Projections' page.

 
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I have bought some shares but they still have not come to demat account. Can I sell them?

If you are within the same settlement cycle in which you purchased the shares you can sell them.Or else you can also sell the share using the BTST facility available. For further details refer to the BTST FAQ

 
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What is a short delivery?

Short delivery refers to a situation where a client, who has sold certain shares during a settlement cycle fails to deliver the shares to the member either fully or partly.

 
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What is an auction?

An auction is a mechanism utilised by the exchange to fulfil its obligation towards the buying trading members. Thus, in case for a settlement, the selling trading members have delivered short, their deliveries are bad or they have not rectified the company objection reported against them, the exchange purchases the requisite quantity from the market and gives them to the original buying member. Auctions are generally held on Friday.

 
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What factors give rise to an auction ?

There are three factors, which primarily give rise to an auction:
1. Short deliveries
2. Un-rectified Bad Deliveries - this is relevant only in respect of shares in physical form
3. Un-rectified Company Objections

 
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What happens if the shares are not bought in the auction?

If the shares could not be bought in the auction i.e. if the shares were not offered for sale in the auction, the Exchange squares up the transaction as per SEBI guidelines. The guideline in force stipulates that the transaction is squared up at the highest price on the NSE from the relevant trading period till the auction day or at 20% above the last available closing price on the NSE on the auction day, whichever is higher. The pay-in and pay-out of funds for auction square up is held along with the pay-out for the relevant auction.

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Margin Product
 

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What is Margin Trading / Trading in Margin Segment at ICICIdirect.com?

In margin trading, you take buy/sell positions in stock(s) with the intention of squaring off the position within the same settlement cycle. If, during the course of the settlement cycle, the price moves in your favour (rises in case you have a buy position or falls in case you have a sell position), you make a profit. In case the price movement is adverse, you incur a loss. However, you also have the option to take/give delivery of buy/sell position respectively if you have sufficient cash/securities to do so.

Normally to buy shares, you have to place (ensure availability of limit) 100% of the order value, while to sell shares, you need to have shares in your demat account. However, margins are blocked only to safeguard against any adverse price movement. At present, you have to place 33.33% of the order value as margin. With margin trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. However, the risk profile of your transactions goes up.

 
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How is margin trading different from trading in Cash segment?

While buy/sell transactions in Cash Segment are settled by delivery unless squared off within the same settlement, buy/sell transacions in the Margin Segment are squared off unless converted into delivery (cash segment). Time of End Of Settlement process would be specified in the Open Margin Position screen every Tuesday. For example, when you place an order to buy 100 shares of Reliance in the cash segment, your intention is to pay for and receive the shares in your Demat Account. However, if the same order were to be placed in the margin segment, your intention would be to sell those shares subsequently in the same settlement at a higher price and thereby make a profit on the same. However, if the price falls subsequently, there may be a loss.

Since a cash position is meant to be settled by delivery, the required cash or securities are blocked in full. For example, if you place an order to buy 100 shares of Reliance, 100% of the order value is blocked from your limit and if you place an order to sell 100 shares of Reliance, 100 securities of Reliance are blocked in your Demat Account. On the other hand, in a margin order, only a specified % of the order value is blocked from your limit. A sell order in the margin segment can be placed even without having any stock in demat account. However, unlike the sell order in the cash segment which can be placed without having any limit, a sell order in margin can be placed only if sufficient limit is available. The most important thing to understand is that though you can leverage on your trading limit with margin trading, the risk profile of your transactions goes up substantially.

 
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Which stocks are eligible for margin trading? Why is the stock list restricted to specific scrips only?

At present, we have enabled select shares for trading in the margin segment. These stocks currently account for more than 95% of the trading volume on the bourses. Only those stocks, which meet the criteria on liquidity and volume have been considered for margin trading. Technically, the stocks having low impact cost have been considered for margin trading. Technically, the stocks having low impact cost have been included.

 
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How do I place a margin buy/sell order?

In the "Buy" and "Sell" page, you need to opt for "Margin" in the "Product" drop down box. All other order parameters remain the same. In case you face any problem, you please refer to the "Help" section on the page.

 
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Can I short sell the shares (i.e. sell shares which I do not hold in DP)?

Yes, you can short sell the shares in margin segment. However, you have to buy back the shares within the settlement cycle so as you cannot have an open net position at the end of the cycle.

 
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Do you block the shares in DP when a sell order is placed in the margin segment?

No. Unlike the sell order in the cash segment, there is no block on your holdings in the demat account.

 
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How much margin would be blocked on placing the margin order?

Initially, margin is blocked at the applicable margin percentage of the order value. For market orders, margin is blocked considering the order price as the last traded price of the stock. On execution of the order, the same is suitably adjusted as per the actual execution price of the market order.

 
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Is the margin % uniform for all stocks?

It may not be so. Margin percentage may differ from stock to stock and settlement to settlement based on the risk involved in the stock, which depends upon the liquidity and volatility of the respective stock besides the general market conditions. Click here to see the margin % applicable for each stock.

 
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What is meant by 'squaring off a position'? What is a cover order?

Squaring off a position means closing out a margin position. For example, if you have a margin buy position of 100 Reliance Shares', squaring off this position would mean selling 100 Reliance shares in the same settlement. The order placed for squaring off an open position is called a cover order. In the example, the order placed to sell 100 Reliance shares is a cover order against the open position - 'Bought 100 Reliance Shares'.

 
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Is margin blocked on all margin orders?

No. Margin is blocked only on margin orders, which are in the nature of building up fresh positions. Margin orders which are placed to square up existing open buy/sell position (called 'cover orders') shall not attract margin.

For example, if you have a buy position (executed trade) of 100 shares in Reliance in margin and now place a sell order for 100 shares in Reliance in margin, the sell order would not attract any margin as it is in the nature of a cover order. However, if you place a sell order for 150 shares, the fresh component of the order i.e. 50 shares would attract margin at the applicable margin rate. Such orders can be called 'partial cover order'.

Please note that cover order is recognized only against the executed open position and not against pending order. For example, if you have a pending buy order of 100 shares in TISCO and want to place a sell order of 100 shares in TISCO at a higher price, the sell order would not be recognized as a cover order and shall accordingly attract margin.

 
 
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Is there any impact on the limit on execution of a buy/sale order in margin segment?

If it is an execution of a fresh order (i.e. an order which would result into building up an open position), the margin blocked gets appropriately adjusted for the difference, if any, in the order price at which the margin was blocked and the execution price. Accordingly the limits are adjusted for differential margin.

If it is an execution of a cover order (order which would result into square off of an existing open position in margin), the following impact would be factored into the limits:
a) Release of margin blocked on the open position so squared up.
b) Effect of profit & loss on the square off of such a transaction.

 
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How do I differentiate between margin orders and cash orders in the order book?

Margin orders are displayed with a yellow background while cash orders are displayed with a white background to distinguish between the two order types.

 
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How do I see my open positions in margin?

You can view all open margin positions by clicking on "Margin Positions" on the trading page. The margin positions table gives details such as Stock, buy/sell position, open qty, cover order qty, weighted average of buy/sell price at which the position has been built up, current market price, mark to market profit/loss and total margin blocked on the open position.

 
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How do I place a square off order in margin to cover my open positions?

You can place the square off order either through the normal buy/sell page or through a hyper link "Square off" on the "Margin Position" page.

 
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How does the profit and loss recognized on execution of square up (cover) orders?

Execution price of cover order is compared against the weighted average price at which the position was built up (as shown in the "margin Position" table) and profit/loss is calculated therefrom.

For example, say you have a margin position - 'Buy 100 Reliance Shares' at an average price of Rs. 100 per share created through the execution of 2 orders - 'Buy 50 Reliance Shares @ Rs. 110 per share' and 'Buy 50 Reliance Shares @ Rs. 90 per share'. If you square off a part of the position by selling 60 Reliance Shares @ Rs. 105 per share, the profit on such square off would be calculated as :
Quantity squared off * (Square off trade price - Average price of the position)
60 * (105 - 100) = 300

 
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What is meant by 'Convert to Delivery' ? Can I choose not to square off a margin position?

Margin positions are meant to be squared off. However, if you want, you can choose to receive or give delivery of shares against your positions. The expression of this intention is 'Convert to Delivery'. For example, if you have a margin position of 'Buy 100 Reliance Shares', instead of squaring off this position by selling 100 Reliance shares in the same settlement, you can choose to receive delivery against the same. You can convert even a part of the total quantity of 100.

 
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How do I convert my margin position into delivery (cash segment)?

You can click on hyper link "convert to delivery" in the "Margin Position" table to convert the desired quantity to delivery (Cash segment), provided you have adequate funds/stock to convert the buy/sell position respectively.

 
•

Can I convert my position in Cash Segment into Margin Positions?

No. Only the position in margin can be converted to delivery (cash) and not vice versa.

 
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Can I convert my pending margin order into an Order for Cash Segment?

No. Only the executed margin position can be converted to delivery (cash segment) and not the pending orders in margin. In such case, you can cancel your margin order and place a fresh order in cash.

 
•

Is there any additional brokerage charged on margin positions converted to delivery?

Yes. All margin positions converted to delivery shall attract additional brokerage for the difference in the brokerage applicable for margin and cash segment.

 
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When do you release the margins blocked on margin positions?

When the margin position is closed out(either by squaring off or converting to delivery), the proportionate margin blocked on the position so squared off is released back and added to the limits.

 

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How does 'conversion to delivery' impact limits?

On converting a 'Buy' position to delivery, additional amount is blocked from your limits to provide for 100% of the trade value of the converted quantity. On converting a 'Sell' position to delivery, the converted quantity is blocked in your Demat account. The limit increases on account of release of the margin blocked earlier on the 'Sell' position and further on account of 100% of the sale proceeds of the converted quantity.

 

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What is meant by Threshold MTM Loss percentage?

Threshold MTM (mark to market) Loss percentage is the maximum loss percentage up to which additional margin shall not be called for. Once the actual MTM loss percentage exceeds the threshold MTM loss percentage, our system would block additional margin required from the limit available.

 

•

What will happen if during the day the last traded price for the scrip breaches +/- 16% of the previous trading day closing price.

The scrip will be disabled from further trading in the margin segment. If the scrip is in positive compared with the previous trading day closing price, then all pending sale orders will be cancelled and all short positions will be squared off at market price. Similarly, If the scrip is in negative compared with the previous trading day closing price then all pending buy orders will be cancelled and all the long positions will be squared off at market price.

 
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How do you calculate additional margin required when the MTM loss is more than the threshold per cent?

The available margin on the stock as per the "Margin Position" table is first reduced by the actual MTM loss amount to arrive at the effective available margin. The effective available margin is compared with the margin required to continue with the position (i.e. Current market price at the applicable margin percentage) and the difference is called for as Additional Margin.

For example say you have bought 100 shares of XYZ at Rs.100 and Threshold MTM Loss % is 20% and the applicable margin % is 35%. You would be having a margin of Rs.3500 blocked on this position. The current market price is now say Rs.75. This means the MTM loss is 25% which is more than the threshold MTM loss % of 20% and hence additional margin to be called in for. Additional margin to be calculated as follows:

(a) Margin available

 

Rs.3500

(b) Less : MTM Loss

(100-75)*100

Rs.2500

(c) Effective available margin

(a-b)

Rs.1000

(d) Required Margin

75*100*35%

Rs.2625

(e) Additional Margin required

(d-c)

Rs.1625

 

If the limit is not sufficient to meet the call for additional margins, ICICIdirect may close out the margin position by placing a market square off order.However, before placing the square off order all pending margin orders in that stock are cancelled by ICICIdirect.

 
•

How do you call for additional margin during the MTM process?

Once the MTM loss percentage exceeds the threshold MTM loss percentage, our system would block additional margin required out of the limits available.

 
•

What happens if limits are not sufficient to meet the additional margin requirements?

Our risk monitoring system can place a market square off order to close the position. However, before placing the square off order all pending margin orders in that stock shall be cancelled by our risk monitoring system.

 
•

What happens if the limit is insufficient to meet a margin call but there are unallocated clear funds available in the bank account?

While making an online check for available additional margin, our system would restrict itself only to the extent of trading limit and would not absorb any amount out of un-allocated funds so as to keep your normal banking operations undisturbed. It is, therefore, advisable to have adequate surplus funds allocated for trading when you have open margin positions.

 
•

Can I do anything to safeguard the positions from being closed out?

Yes, you can always allocate additional margin, suo moto, on any open margin position. Since the close-out process is triggered when losses exceed the threshold level and available margin is less than the margin required, having adequate margins can avoid calls for any additional margin in case the market turns unfavorably volatile with respect to your position. You can add margin to your position by clicking on "Add Margin" on the "Margin Position" page by specifying the margin amount to be allocated further.

 
•

In case of profit on a margin position or where the Available Margin is in excess of the Margin Required, can I reduce the margin against the position to increase my limit?

Margin (though in excess of the requirements) cannot be reduced by you. The only way margin is released is by canceling the margin order (where margin is blocked against a margin order) or by closing out a margin position (where margin is blocked against a margin position).

 
•

Is it compulsory to square off the position within the settlement?

Yes. It is compulsory to square off all your open positions (net of what has already been converted to delivery) within the settlement.

 
•

What is the stipulated time limit up to which the margin positions need to be compulsorily squared off?

The stipulated time for end of settlement process will be displayed on the margin position page of our site on the last day of settlement.

 
•

Can I do convert my margin position to Delivery (Cash segment) instead of squaring up the position before the time limit expires?

Yes, you can do so at any time before the stipulated time limit.

 
•

In case the stock is in No Delivery, Can I have extended period to square up my position?

You can convert to delivery/square up the margin position within the extended settlement period on account of no delivery. For example you have taken buy position in TISCO in settlement No. 40 and the stock is no delivery in settlement No. 40 & 41, you can square off your position before the close of settlement No.42.

 
•

What happens if I do not square off my position before the stipulated time limit on the last day of the settlement?

In such a case, our risk monitoring system shall have the option to place an auto square off order to close out your open position.

 
•

What happens if for some reason a margin position remains open at the end of settlement?

Our risk monitoring system would square off the position but the onus lies on you to close out all open positions. If for some reason, the position remains open at the end of settlement, you will have to make all the necessary arrangements for funds/securities for the settlement of the position and shall be fully liable for the consequences (auction/penalty/interest) of the same.

 
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Corporate Benefits
 

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What is a Book closure/Record date?

The registered shareholders of the company are entitled to corporate benefits such as dividend, bonus, rights etc. announced by the company from time to time. Since, the ownership of shares of companies traded on the stock exchange is freely transferable and to enable the company to know the persons entitled to the benefits, all transfers of securities have to be registered with the company (this is required in case of transfer of shares in physical form). Since transfer of securities is a continuous process open any time, the company announces cut off dates from time to time and members on the register of shareholders as of these cut off dates are entitled to the benefits. Such cut-off dates are record dates. Alternatively, the company might choose the close the register of shareholders for registration of transfer during a specified period. All transfer requests received before the commencement of the book closure or on or before the record date are considered for the purpose of transfer. A Company cannot close its books for more than 30 days at stretch for a book closure, and not more 45 days in a year. The period between two Book Closure cannot be less than 90 days.

 
•

What is the difference between book-closure and record-date?

ACC announced a Book Closure (BC) for the period 6th July to 30th July'96. During this period, the company had closed its register of security holders. This was done to determine the number of registered members who were eligible for the Bonus 3:5 and a dividend of 40%. The process of transfer of shares was operational till 5th July'96. The company announced a No Delivery period from 12th June to 9th July'96 before the Book Closure. During this period, trading was permitted in the securities but the trades were settled only after 9th July. Hence, the buyers of the shares were not be eligible for the Bonus 3:5 and a 40% dividend. The first day of the No Delivery period is considered as an Ex - Date since the buyer of the shares is not eligible for the corporate benefits for this BC.

The same logic holds good for Record date, but the two main differences are that : In case of a record date, the company does not close its register of security holders. Record date is a cut off date ( in the above example '5th july96) for determining the number of registered members who are eligible for the corporate benefits [Interim dividend (30%) ].

 
•

What is a 'No Delivery' period?

Whenever, a book closure or a record date is announced by a company, the exchange sets up a 'No Delivery' period for that security. During this period, trading is permitted in the security. However, these trades are settled only after the No-Delivery period is over. The start of No-Delivery period is the ex-date of the settlement.The settlement is clubbed with the settlement of the week whose pay-out date falls just after the end of the no-delivery period. This is done to ensure that investor's entitlement for the corporate benefits is clearly determined. No-delivery period generally extends to all weekly cycles touched from 15 days prior to the record date and 4 days subsequent to the record date (both inclusive).

 
•

What is an ex-date?

The first day of the 'No Delivery' period is the ex-date viz., if there is any corporate benefit such as rights, bonus, dividend etc. announced for which book closure/record date is fixed, the buyer of the shares on or after the ex-date will not be eligible for the benefits while the seller would be eligible for the same.

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  Non Pari Passu(NPP) Shares
 
•  What is a Non Pari Passu (NPP) share?

In case a company issues new shares during a financial year, these shares, unless specified otherwise, are entitled only for pro rata dividend in respect of the financial year in which these are issued. These shares are known as NPP shares, which like the ordinary shares are eligible for only a part of the dividend. If you hold more than one class of shares for a single stock, the holdings appear separately in your Demat Account as they have different ISIN No. - a number used for identification of the various stocks.

 
•

What happens if I hold (Non Pari Passu) NPP shares ?

The ordinary and NPP shares of the company thus carry disproportionate rights as to dividend, although their market price remains the same. To compensate, the buyer to whom these new shares are delivered, for loss of pro rata dividend, the NPP benefit is passed on to the buyer of these NPP shares. Thus if you sell of NPP shares you will have to pay, the dividend declared in respect of ordinary shares and this NPP amount shall be deducted from the sale price. This old-new compensatory value(ONCV) is referred to as 'new share dividend'. Alternatively if you buy shares and you get delivery of NPP shares, the ONCV will be received by you.

 
•

How does one ascertain that the dividend received/paid on a certain scrip is correct?

The Exchange publishes a list of the scrips that are eligible to receive pro-rata dividend (non pari-passu) per settlement. The list contains the details pertaining to the distinctive nos. and the rate of dividend payable.

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Research And Other Resources
 

•

What other resources will the site offer me to help in taking smarter online investment decisions?

Our site will offer you a comprehensive set of resources like online quotes, news, charts, financial databases, company reports, earnings estimates and a host of research based tools to help you make better decisions. We will also offer a comprehensive markets page where you can get to the latest update on markets, trends, news and events affecting the markets.

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  Password
 
•

How do I get my Logon ID and PASSWORD for the first time?

In order to ensure that you get secure Logon Id and Password, we request you to set your own LOGON ID AND PASSWORD when you fill a form. While getting the Logon Id and Password you will be given an Account Reference Number(ARN). Please ensure that the ARN is written on your application form. This ARN will be used for tracking the customer registration request. We will inform you when your application is processed and your account is set up. Once your account is set up, we will inform you by e-mail and you will be prompted to change your Password, the fist time you login after your account is set up.

If you have filled up the application forms for E-invest account directly without registering on the site, We would dispatch your LOGON-id and password by normal post in a sealed envelope. Your account shall be activated for trading only after we receive your confirmation of you having received the same in a sealed condition.

   
•

How do I Change my password:

You can change your password anytime by accessing our Customer Service Section. In fact we strongly advise you to periodically change your password for added security

   
•

I have forgotten my password, what do I do?

If you have forgotten your password , please click on the Forgot your Password link in the Login page. You will be asked the same Password reminder questions that you entered while Registering/Account Opening, for which you will have to give the same answers as you had entered. In case you give the right answers, your password will be reset and you will be prompted to specify a new Password. Even then, if you are not able to access our website , please contact us by sending an e-mail to helpdesk@ICICIdirect.com.

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  Security
•

How secure are my transactions?

ICICIdirect brings you the highest standards of security, which are commercially available on the net. Millions of customers are dealing in shares on the net. We bring you the same level of security standards, which are used by leading international trading sites.

We use two level of securities on our web site : Secure Socket Layers (SSL) and 128 bit encryption technology to provide you the higher commercial available security standard on our web site. This is a worldwide standard of security adopted by all international online trading sites. SSL is a method of sending private documents through the internet by using a private key to secure messages. Data encryption methods are used to achieve data security.

 
•

How safe is my Bank Account?

Although your bank account is linked to the brokerage account, only you have access to it. ICICIdirect has access to it to the extent of the amount that you allocate exclusively for trading.

 
•

How safe are my Logon Id and password?

Your Logon Id and Password are only known to you as these are stored in encrypted form with us. Infact, even the first time also you get your own Logon Id and Password that are known only to you.

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Accessing Bank Account And Setting Limits
 

•

I have money in my bank account but if I place an order to buy it is not accepted?

Please check your Trading Limit. Even if you have money in your Bank account it has to be allocated by you for trading. The amount of money required before placing a buy order or a margin sell order would depend on the value of the order and whether the order is placed in the 'Cash Segment' or the 'Margin Segment'. In case of a Cash Order, 100% of the order value is required while for a Margin Order, only a specified % of the order value is required.

 
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What happens when I allocate the amount for online investing?

When you allocate any amount from your Bank account, it gets blocked in your bank account and you get a TradingLimit. This money continues to earn the normal interest, which is applicable to the Bank Account. In fact if you have not used this money while trading, you can always remove the block. When you unblock the money your trading limit also reduces proportionately.

 
•

I have not earmarked any money from my Bank Account but still my Trading Limit is positive?

If you sell some shares in the cash segment, generally you can use the money to make purchases on the same day. This results in your trading Limit going up.

 
•

I have sold some shares but my trading limit has not gone up?

The possible reason could be the share you sold is currently trading in 'No Delivery'(ND) period and hence the money may be received from the exchange only after 2-3 settlements . Please check the list of stocks in no delivery. However, you need not worry as ICICIdirect will keep track of No Delivery trades and ensure that your Trading Limit gets updated on the appropriate day.

 
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  Access To Website
 
•

If I don't have access to internet will I be able to use this service?

Yes and No. You must have access to Internet, but it need not be from your residence or your office. You can walk into one of our ICICI Centers, where we shall be putting up terminals, and access our site on the Internet. You can also walk into any cyber café and access our website ICICIdirect.com for online investing.

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