General

What happens if there is a margin shortfall in my MTF position with ICICI Direct?

A margin shortfall in your MTF position can occur due to various reasons, such as:

• Stock hitting upper or lower circuit, preventing square-off
• Increase in VaR/ELM margins
• Adverse  price movement  increasing margin requirement
• Any other change in margin norms or position value

If a margin shortfall occurs, you must take  one  of the following actions by the end of the same trading day:

• Add Margin: Deposit the required funds to clear the shortfall
• Convert to Delivery (CTD): Convert the position to delivery

If no action is taken by EOD,  ICICI Direct will forcefully convert the position to delivery on the next trading day  as per their policy.

Even after CTD, your account may still show a margin shortfall or negative limit. In such cases, ICICI Direct can recover it by:

• Squaring off other MTF positions, or
• Selling shares available in your demat account

The sale proceeds will automatically be used to clear the negative limit.