The ICICIdirect Advantages

A unique 3-in-1 On-line Trading Account

Seamless, Secure and Integrated 3-in-1 trading platform...

Our 3-in-1 trading platform links your banking, trading and demat accounts, ensuring unmatched
convenience for customers.

With an ICICIdirect.com account, you get the following benefits:

a) Seamless Trading: You can trade in shares without going through the hassle of tracking
settlement cycles, writing cheques and transfer instructions. Absolutely hassle free!

b) Security: Instead of transferring monies to a broker's pool or towards deposits, you can
manage your own demat and bank accounts when you trade through ICICIdirect.com. It
provides you the flexibility to pay only when you trade.

c) Wide range of products: Share trading in both NSE and BSE, innovative offerings like -
Margin, MarginPlus, BTST, SPOT. Derivatives trading, overseas trading, mutual funds, IPOs
and on-line life insurance.

d) Award Winning Research: We understand the need for the right research to make the right
investment decision and has focused heavily n this area. Our team with its consistent delivery
has been voted as the 'Most preferred brand of financial advisory services' at the CNBC Awaaz
Consumer Awards, 2007.

Please click here to see our comprehensive research offerings and performance scorecards.

e)Control: You can be rest assured, that your order will be precisely for the amount you wanted
it to be, without any deviation, giving you full control of your money and your trades

We also offer a wide array of services:

ICICIdirect.com On- The - Move : An innovative low bandwidth site which helps you trade at
high speeds even through low bandwidth connections like data card and GPRS.

Call N Trade : In situations when you are unable to log in to icicidirect.com website, you can
place orders securely over the telephone with the Call N Trade service. Click here for our Call N
Trade numbers

ICICIdirect.com Equity Advisory Group: A premium service for privileged customers with an
assigned equity advisor who will guide you in placing trades. For more details please write in to
equityadvisory@icicidirect.com

ICICI Securities ATS (Active Trader Services): A service for the born trader, who lives in and
breathes the stock market with specialized research and dedicated relationship managers. For
more details write in to ats@icicisecurities.in

ICICIdirect Knowledge Program: ICICIdirect Knowledge Programs provide you with an insight
into a wide range of financial products like derivatives, shares, mutual funds, IPOs, small
savings and insurance to grow your money and cater to your varying needs across different
stages of life. More than just products these programs help you make informed investment
decisions and manage your money better.
Products and Services

A product for every need: ICICIdirect.com is the most comprehensive website, which allows you
to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial
products. Simply put we offer you a product for every investment need of yours.

1. Trading in shares:
ICICIdirect.com offers you various options while trading in shares.

Cash Trading : This is a delivery based trading system, which is generally done with the
intention of taking delivery of shares or monies.

Margin Trading : You can also do an intra-settlement trading upto 3 to 4 times your available
funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off
the position within the same day settlement cycle.

MarginPLUS Trading : Through MarginPLUS you can do an intra-settlement trading upto 25

times your available funds, wherein you take long buy/ short sell positions in stocks with the
intention of squaring off the position within the same day settlement cycle. MarginPLUS will give
a much higher leverage in your account against your limits.

Spot Trading : This facility can be used only for selling your demat stocks which are already
existing in your demat account. When you are looking at an immediate liquidity option, 'Cash on
Spot' may work the best for you, On selling shares through "cash on spot", money is credited to
your bank a/c the same evening & not on the exchange payout date. This money can then be
withdrawn from any of the ICICIBank ATMs.

BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 1st
and 2nd day after the buy order date, without you having to wait for the receipt of shares into your
demat account.

CallNTrade® : CallNTrade® allows you to call on a local number in your city & trade on the
telephone through our Customer Service Executives. This facility is currently available in over 11
major states across India.

Trading on NSE/BSE : Through ICICIdirect.com, you can trade on NSE as well as BSE.

Market Order : You could trade by placing market orders during market hours that allows you to
trade at the best obtainable price in the market at the time of execution of the order.

Limit Order : Allows you to place a buy/sell order at a price defined by you. The execution can
happen at a price more favorable than the price, which is defined by you, limit orders can be
placed by you during holidays & non market hours too.

2. TRADE IN DERIVATIVES:

FUTURES
Through ICICIdirect.com, you can now trade in index and stock futures on the NSE. In futures
trading, you take buy/sell positions in index or stock(s) contracts having a longer contract period
of up to 3 months.

Trading in FUTURES is simple! If, during the course of the contract life, the price moves in your
favour (i.e. rises in case you have a buy position or falls in case you have a sell position), you
make a profit.

Presently only selected stocks, which meet the criteria on liquidity and volume, have been
enabled for futures trading.

Calculate Index and Know your Margin are tools to help you in calculating your margin
requirements and also the index & stock price movements. The ICICIDIRECT UNIVERSITY on
the HOME page is a comprehensive guide on futures and options trading.

OPTIONS

An option is a contract, which gives the buyer the right to buy or sell shares at a specific price,
on or before a specific date. For this, the buyer has to pay to the seller some money, which is
called premium. There is no obligation on the buyer to complete the transaction if the price is not
favorable to him.

To take the buy/sell position on index/stock options, you have to place certain % of order value
as margin. With options trading, you can leverage on your trading limit by taking buy/sell
positions much more than what you could have taken in cash segment.

The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying
Asset at the specified strike price by paying a premium whereas the Seller of the Call has the
obligation of selling the Underlying Asset at the specified Strike price.

The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at
the specified strike price by paying a premium whereas the Seller of the Put has the obligation of
Buying the Underlying Asset at the specified Strike price.

By paying lesser amount of premium, you can create positions under OPTIONS and take
advantage of more trading opportunities.

3. Investing in Mutual funds:

ICICIdirect.com brings you the same convenience while investing in Mutual funds also - Hassle
free and Paperless Investing.

With the inclusion of Fidelity MF, you can now invest on-line in 19 mutual Funds through
ICICIdirect.com. Prudential ICICI MF, JM MF, Alliance MF, Franklin Templeton MF, Sundaram
MF, Birla Sun Life MF, HDFC MF, Principal MF, UTI MF,Reliance MF,Kotak MF,Tata MF,DSP
Merrill Lynch MF, ING MF,CHOLA MF,Deutsche MF,HSBC MF and Standard Chartered MF are
the Mutual Funds available for investment. You can invest in mutual funds without the hassles of
filling application forms or any other paperwork. You need no signatures or proof of identity for
investing.

Once you place a request for investing in a particular fund, there are no manual processes
involved. Your bank funds are automatically debited or credited while simultaneously crediting or
debiting your unit holdings.
You also get control over your investments with online order confirmations and order status
tracking. Get to know the performance of your investments through online updation of MF
portfolio with current NAV.

ICICIdirect.com offers you various options while investing in Mutual Funds:

Purchase: You may invest/purchase Prudential ICICI MF, JM MF, Alliance MF, Franklin
Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF, UTI MF ,Standard
Chartered MF ,Reliance MF,Kotak MF, Tata MF,DSP merrill lynch MF,ING MF,CHOLA
MF,Deutsche MF,HSBC MF and Fidelity MF without the hassles of filling application forms.

Redemption:In addition to giving hassle-free paperless redemption, ICICIdirect.com offers

faster liquidity. You can redeem the mutual fund units through ICICIdirect.com. The money will
be credited to your bank account automatically 3 days after the order placement date.

Switch: To suit your changing needs you may wish to shift monies between different schemes.
You can switch your monies online from one scheme to another in the same fund family without
any hassles.

Systematic Investment plans (SIP): SIP allows you to invest a certain sum of money over a
period of time periodically. Just fill in the investment amount, the period of investment and the
frequency of investing and submit. ICICIdirect.com will do the rest for you automatically
investing periodically for you.

Systematic withdrawal plan: This allows you to withdraw a certain sum of money over a period
of time periodically.

Transfer-in: You can convert your existing Mutual funds into electronic mode through a
transfer-in request.

4. IPOs and Bonds Online:

You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the
hassles of filling ANY application form/ paperwork.

Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit the
market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer documents,
and IPO analysis are few of the features, which help you, keep on top of the IPO markets.

5. Overseas Trading:

6. Content Features:

There are a host of features on ICICIdirect.com that shall help you make informed investment
decisions.

We provide you with the indices of major world markets, nifty futures and ADR prices of
Indian scrips. Get daily share prices of all scrips, monthly and yearly high/lows etc through
Market Watch.

Get breaking news from CNBC and Reuters. Catch a glimpse of News Headlines through our
scrolling Direct News Headlines.
 Get a snapshot of the latest developments in the markets through the day using Market
Commentary. You can get weekly snapshots also. Use Pick of the week which focuses on
fundamental stocks with sound prospects.

Catch interviews, reactions and comments from industry leaders with CEO Call. Track the
movement of leading scrips within a sector across 12 sectors using Market@Desktop.

Equip yourself with our barometers. Market Barometer gives you in-depth information of the
weightages of shares on Nifty and Sensex. Get a glimpse of the performance of various industry
sectors through Industry Barometer.

Direct Technical Charts offer interactive charting with advanced indicators. Get a bird's eye
view of over 5000 companies at a single click using Company Snapshot. Glance through
analyst recommendations using Multex Global Estimates.

In case, you are not too comfortable with share trading, try our Learning Centre, which is a
tutorial on investments and My Research, that helps you to research a stock better.

7. Personal Finance:

Use our Personal Finance section and get hold of tools that can help you plan your investments,
retirement, tax etc. Analyse your risk profile through the Risk Analyzer and get a suitable
investment portfolio plan using Asset Allocator.

8. Customer Service Features:

With 'ICICIdirect Customer Tools & Updates' you can trouble shoot all your problems online.

Address your trading queries on-line through "Easy Mail". You can view and change your
profile or password on-line through General Profile option.

Get details of ICICI Centers, our sales and service offices, across India through branch locator.

View your Account Statement and Bill Summary of your transactions online using bills &
accounts.

View your Digital Contract Notes instantly. View various charges through the Fee Schedule
option

Give your feedback or viewpoint through the Viewpoint online.

ICICIdirect
e-invest
Account
. 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, wh
one or more Demat accounts. This means that you can buy and sell shares and forget about the hassles of s
your Demat account and transfer of money from/to your Bank account take place automatically with no paper
away and settlements is no longer a problem.
. What is the 3-IN-1 concept?

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

. 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 4 accounts.

. 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.

. 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 th
with ICICI group.

Becoming A Customer

. Who is eligible for this service?

All resident Indians and non residents (NRI) residing in Gulf Co-operation Council (GCC) countries of United
Kuwait, Oman and Qatar are eligible to avail of this service.
. 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
along with a Bank Account and one or more Demat accounts as required.

. How do I request a form?

You can request our representative to visit you (Select Cities Only) by registering online through our website.
ICICI Bank Branches / Centres,where our trained personnel help you in becoming ICICIdirect e-Invest custom
a form by sending us an e-mail at helpdesk@ICICIdirect.com and our CSE will contact you to complete the in

. 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 req
application is not processed because of lack of some details, you will be contacted by our representative or b

. How do I know my application has been accepted?

"You can check your account opening status on www.icicidirect.com on the customer service page under the
We shall also inform you by e-mail in case your application has been accepted."

. 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/-.
 Existing ICICI Customers

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

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

Bank Account/Demat Account

. 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
with your e-Invest account. In case you do not have a ICICI Bank account, an online banking savings accoun
account.

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

The information of your Bank, Demat and e-Invest account shall be available to you completely online 24 hou
be able to access all details regarding your orders and trades on the website. You will be able to see the resu
and Demat account on the trading +1 working day and trading +2 working days of the settlement, without wa
the Bank.

. 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 accou
service can be accessed on the website www.icicibank.com with a secure Logon Id and Password. Apart from
transaction history and current balance, Infinity allows you to transfer money from one account to another an
Mumbai.

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

New ICICIdirect e-invest Customers

. I am a new customer and have just been informed that my ICICIdirect e-invest account has been set u

Please check our comprehensive section on Trading Guide

. 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
soon as the cheque is cleared. Once you have funds in your bank account, you need to allocate the required
can sell some shares from your Demat Account in the Cash Segment and use the money to purchase the sh
money required before placing a buy order or a margin sell order would depend on the value of the order.

. 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 Lim

Please check your Bank balance to find if you have adequate money in your Bank account. It is possible that
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

. 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
has not been blocked on account of orders placed by you. Once any amount is deallocated, it can be withdra

. 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 woul
feedback on the facility you want.

Online Investing

. 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

. 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 B
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 t
Therefore, chances of its getting executed are better. In case of market orders for NSE, all market orders pla
limit orders at the last traded price. Where a market order is not executed fully, it becomes a limit order for th
price.

Market Orders in BSE : Explanation

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

. Which shares will I be able to buy and sell?

You will be able to buy and sell shares in the Cash Segment that are traded in the compulsory dematerialised
you may trade in more than 1100 scripts in NSE and more than 3000 scripts in BSE through ICICIdirect.com.
added to this category every month by the regulatory authorities. Of these shares, you may place orders for s

. 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 i
your order they are validated by the system and sent to the exchange for execution. The entire process is ful
interventions. You will also receive an e-mail confirming the orders placed by you at the end of the trading da
also be sent via e-mail for the orders executed during the trading day. The digitally signed contract notes are
page on the site.

. Is it possible that an order is accepted by the exchange but a trade does not take place against it? Is
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 ex
 shares @ Rs. 100 per share. It might remain totally unexecuted if there are no buy orders for the share for a
order can get executed for any quantity less than or equal to the order quantity. On part execution, the origina
the balance quantity against which another trade can happen. Since these are different trades, it is possible t
price.

In case of market orders placed on NSE, even a market order might remain unexecuted if there are no match
unexecuted portion of the market order is converted into a limit order at the last traded price for the balance q
traded price of a share was Rs. 100, if a market order is placed to sell 100 shares, the sell order will be match
the shares. In case there are no or insufficient orders for buying 100 shares, the unexecuted market order is
order to buy sell 100 shares at a price of Rs. 100 (the last traded price). In case the order was partly execute
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
exchange with the price of the best bid offer. In case at that point of time it is found that that particular bid or o
exchange this market order gets cancelled by the exchange. In case of part execution of market order, the re
limit order at the last executed price.

. 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
against the order which you wish to modify. However, you cannot modify your order while it is queued with th
awaited from the exchange for the acceptance of the placement of any order or any modification/cancellation
partly executed, only the unexecuted portion of the order can be modified.

. 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
against the order which you wish to cancel. In case the order is already partly executed, only the unexecuted

. 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
whenever the exchange next opens for trading. In the Order Book, the status of such orders is shown as 'Req

. 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 so
used to buy the shares you want.

. Can I go short?

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

. 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,
a real-time basis. On execution, the status changes to 'Executed' or 'Part Executed'. You can view details of
link. In the Trade Book you will be able to see all the trades that have taken place. On clicking the link of Ord
details of the trade execution. In addition, you will receive e-mail confirmations. You can choose to receive th
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

. 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.
prescribed format and manner, establishing a legally enforceable relationship between the member and clien
contract note. Contract notes are made in duplicate, where the member and client both keep one copy each.
. Can I trade on margin?

You can trade on margin on select stocks.

. 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 s
traded within a number of days parameterised by the Exchange. A Good Till Days/Date (GTD) order allows th
days/date till which the order should stay in the system if not executed. The maximum number of days for wh
the system is notified by the Exchange from time to time after which the order is automatically cancelled by th
inclusive of the day/date on which the order is placed and inclusive of holidays. An Immediate or Cancel (IOC
security as soon as the order is released into the system, failing which the order is cancelled from the system
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 tra

. 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) conditi
to disclose only a part of the order quantity to the market. For example, an order of 1000 with a disclosed qua
200 is displayed to the market at a time. After this is traded, another 200 is automatically released and so on
(Disclosed Quantity) should not be less that 10% of the Order Quantity and at the same time should not be g
Quantity.

. 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 re
threshold price specified by the investor in the form of 'Stop Loss Trigger Price'. When a stop loss trigger pric
the order becomes one which is conditional on the market price of the stock crossing the specified SLTP. The
for execution) till the condition is satisfied. Once the last traded price of the stock reaches or surpasses the S
eligible for execution by being taken up in the matching process of the exchange) and then on behaves like a
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
to limit his losses. 'A' may place a limit buy order specifying a Stop loss trigger price of Rs 345 and a limit pric
(SLTP) has to be between the last traded price and the buy limit price. Once the market price of Reliance bre
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' wou
place a limit sell order specifying a Stop loss trigger price of Rs 305 and a limit price of Rs 300. The stop loss
limit price and the last traded price at the time of placing the stop loss order. Once the last traded price touch
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 norma
last traded price should exceed the stop loss trigger price for a buy order is already satisfied. Similary, in cas
should not be greater than the last traded price for the same reason.

. 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%.
products are available there is a price freeze of +/-20%.Orders outside the minimum and the maximum of the
 into the system. However in case of few specific scrips, from time to time the exchange has fixed price band
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 req
freeze for his particular order.

Settlement Of Trades

. What is a Settlement cycle?

Please refer Learning Centre.

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

Rolling Segment : You can choose to sell the share before the end of settlement cycle. However once the se
delivery by paying for it.

TT Segment : Settlement of securities will be done without any netting off of positions. If you have purchased
take delivery. You will not be permitted to sell the same in the same settlement.

The Segment to which the stock belongs can be seen from the 'Stock List'.

. If I have sold some shares, can I use the cash projections therefrom to buy other shares?

Settlement of funds is done on net basis for each segment. Therefore, Cash projections against sale of some
purchase of the same or another TT Segment Stock. Similarly, Cash projections against sale of some Rolling
purchase of the same or another Rolling Segment Stock.

However, there is no netting off between various Segments. Therefore, Net Cash projections against sale of
not be available for purchase of Rolling Segment Stocks in the same settlement. Similarly, Net Cash projectio
Rolling Segment stocks will not be available for purchase of TT Segment Stocks in the same settlement.

However, Net Cash projections of one segment will be available for purchases in another segment on the ne
pay-out day of the earlier settlement falls on or earlier than the cash pay-in day of settlement in which the pur

The Segment to which the stock belongs can be seen from the 'Stock List'.

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

Rolling Segment : You can choose to buy the share before the end of settlement cycle. However once the se
the delivery of shares from your Demat account.

TT Segment : Settlement of securities will be done without any netting off of positions. If you have sold share
mandatorily give delivery. Any purchases have to be separately paid for and delivery taken. Therefore, even
same settlement, the blocks on your DP balances will remain till settlement.

The Segment to which the stock belongs can be seen from the 'Stock List'.

. 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
be automatically transferred to your Demat Account. The money required for purchase will be transferred from
takes place when you sell the share.
. 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 exp
bank account on T+1 day, the day before actual settlement at the exchange which is T+2.

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

. 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
Out of securities (i.e. T+2). In case you do not receive the shares, it may be due to the stock being in 'No Del
will come from the exchange after the 'No Delivery' period is over which could be 1-2 weeks away. The date
to your Demat Account is indicated on the Order verification screen which comes up on submitting a Sell ord
shares may not have come from the exchange because of short delivery by the counter party (selling broker)
an auction to buy the shares (to the extent delivered short by any broker) from the open market and the share
the shares are not received in an auction also, the exchange suitably charges penalty from the person liable
compensated and the consideration is remitted to you as soon as it is received from the exchange.

. 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 t
account on T+2.

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

. 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
BTST® facility available. For further details refer to the BTST® FAQ

. What is a short delivery?

Short delivery refers to a situation where a client, who has sold certain shares during a settlement cycle fails
either fully or partly. Details of short delivery, if any, for orders placed by you is posted in the My Messages lin

. What is an auction?

An auction is a mechanism utilised by the exchange to fulfil its obligation towards the buying trading member
selling trading members have delivered short, their deliveries are bad or they have not rectified the company
exchange purchases the requisite quantity from the market and gives them to the original buying member. Au

. 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

. 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 E
per SEBI guidelines. The guideline in force stipulates that the transaction is squared up at the highest price o
period till the auction day or at 20% above the last available closing price on the NSE on the auction day, wh
out of funds for auction square up is held along with the pay-out for the relevant auction.
 Margin Product

. 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 th
course of the settlement cycle, the price moves in your favour (rises in case you have a buy position or falls i
make a profit. In case the price movement is adverse, you incur a loss. However, you also have the option to
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 s
demat account. However, margins are blocked only to safeguard against any adverse price movement. With
your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. H
transactions goes up.

. 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 settle
Margin Segment are squared off unless converted into delivery (cash segment). Time of End Of Settlement p
Margin Position screen everyday. For example, when you place an order to buy 100 shares of Reliance in the
for and receive the shares in your Demat Account. However, if the same order were to be placed in the marg
sell those shares subsequently in the same settlement at a higher price and thereby make a profit on the sam
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. Fo
100 shares of Reliance, 100% of the order value is blocked from your limit and if you place an order to sell 10
Reliance are blocked in your Demat Account. On the other hand, in a margin order, only a specified % of the
sell order in the margin segment can be placed even without having any stock in demat account. However, u
which can be placed without having any limit, a sell order in margin can be placed only if sufficient limit is ava
understand is that though you can leverage on your trading limit with margin trading, the risk profile of your tr

For more details login to your account and go to Stock List option in Equity section of the Trading page.

. 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 accoun
volume on the bourses. Only those stocks, which meet the criteria on liquidity and volume have been conside
stocks having low impact cost have been considered for margin trading. Technically, the stocks having low im
the stock selection in the margin is at the sole discretion of ICICIDirect, and ICICIDirect reserves the right to i
margin list without any prior intimation to the customers.

. 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 para
face any problem, you please refer to the "Help" section on the page.

. 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 s
an open net position at the end of the cycle.

. 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.
. 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
as the last traded price of the stock. On execution of the order, the same is suitably adjusted as per the actua

For more details login to your account and go to Stock List option in Equity section of the Trading page.

. 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
depends upon the liquidity and volatility of the respective stock besides the general market conditions.

For more details login to your account and go to Stock List option in Equity section of the Trading page.

. 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 o
this position would mean selling 100 Reliance shares in the same settlement. The order placed for squaring o
order. In the example, the order placed to sell 100 Reliance shares is a cover order against the open position

. 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 or
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
in margin, the sell order would not attract any margin as it is in the nature of a cover order. However, if you pl
fresh component of the order i.e. 50 shares would attract margin at the applicable margin rate. Such orders c

Please note that cover order is recognized only against the executed open position and not against pending o
pending buy order of 100 shares in TISCO and want to place a sell order of 100 shares in TISCO at a higher
recognized as a cover order and shall accordingly attract margin.Only the executed orders will result in the op
executed the open position will appear in the "Margin Position" link on the website. You can place the square
link in the Margin Position page. It is always advisable to place the cover order through the 'Margin Position"
positions and can eliminate the error of placing a double order.All fresh orders ( i.e orders which would not re
position) would attract margin.

. 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 ma
adjusted for the difference, if any, in the order price at which the margin was blocked and the execution price
differential margin.

If it is an execution of a cover order (order which would result into square off of an existing open position in m
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.
c) The released margin and effect of profit and loss will reflect under "Limit" of the trading page on the websit

. 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 backgrou
types.

. 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 po
buy/sell position, open qty, cover order qty, weighted average of buy/sell price at which the position has been
market profit/loss and total margin blocked on the open position. It is always advisable to place the square of
page. This will help in avoiding any fresh positions and eliminate the possibility of fresh orders ( i.e orders wh
existing open position) being placed.

. 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 o

. 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 buil
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
2 orders - 'Buy 50 Reliance Shares @ Rs. 110 per share' and 'Buy 50 Reliance Shares @ Rs. 90 per share'.
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

. 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 delive
expression of this intention is 'Convert to Delivery'. For example, if you have a margin position of 'Buy 100 Re
this position by selling 100 Reliance shares in the same settlement, you can choose to receive delivery again
part of the total quantity of 100.

. 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
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.

. 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 orde
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 brok
segment.

. 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 ma
off is released back and added to the limits.

. 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% o
quantity. On converting a 'Sell' position to delivery, the converted quantity is blocked in your Demat account.
release of the margin blocked earlier on the 'Sell' position and further on account of 100% of the sale proceed

. What is meant by Threshold MTM Loss percentage?

Threshold MTM (mark to market) Loss percentage is the maximum loss percentage up to which additional m
actual MTM loss percentage exceeds the threshold MTM loss percentage, our system would block additional
available.

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

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

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

The available margin on the stock as per the "Margin Position" table is first reduced by the actual MTM loss a
available margin. The effective available margin is compared with the margin required to continue with the po
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
be having a margin of Rs.3500 blocked on this position. The current market price is now say Rs.75. This mea
than the threshold MTM loss % of 20% and hence additional margin to be called in for. Additional margin to b

(d-c) Rs.1625 75*100*35% Rs.2625 (a-b) Rs.3500

Rs.1000 Rs.2500 (a) Margin available

(e) Additional Margin required

(d) Required Margin
(c) Effective available margin
(100-75)*100
(b) Less : MTM Loss

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

. 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 additio
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 placin
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 av

While making an online check for available additional margin, our system would restrict itself only to the exten
 any amount out of un-allocated funds so as to keep your normal banking operations undisturbed. It is, therefo
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
exceed the threshold level and available margin is less than the margin required, having adequate margins c
in case the market turns unfavorably volatile with respect to your position. You can add margin to your positio
"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 Requir
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
margin is blocked against a margin order) or by closing out a margin position (where margin is blocked again

. 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

. What is the stipulated time limit up to which the margin positions need to be compulsorily squared of

The stipulated time for end of settlement process will be displayed on the margin positions page of our site ev
positions remain open, the risk monitoring system will square off the order on random basis anytime after the

. Can I do convert my margin position to Delivery (Cash segment) instead of squaring up the position b

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 o
taken buy position in TISCO in settlement No. 40 and the stock is no delivery in settlement No. 40 & 41, you
close of settlement No.42.

. 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 positio
remains open at the end of settlement, you will have to make all the necessary arrangements for funds/secur
and shall be fully liable for the consequences (auction/penalty/interest) of the same.

MarginPLUS

. What is MarginPLUS?

MarginPLUS is an order placement feature where you can take a position at market price and also place a co
SLTP and the limit price. This will minimize the loss on the position. 'MarginPLUS' is a product whereby you c
the time of taking the position itself. Thereby it gives a clear view of maximum downside involved in a particu
square up the position at a particular price, ICICIdirect won't levy a normal margin ranging from 21% to 50%.
customer can suffer.

. What is fresh order?

 The order which is placed for creating the position is called fresh order.

. What is a cover order?

The fresh order as defined above will help you take a position. Assuming you have taken a buy position, your
cover order will be compulsorily have to be a SLTP (stop loss) order.

. From where do I place the trigger orders?

Fresh order and cover order can be placed from the same screen. A separate hyperlink MarginPLUS order is

. Can I place a limit fresh order?

No, fresh order is always a market order.

. What is a Stop Loss order?

A Stop loss order allows the client to place an order which gets triggered only when the market price of the re
trigger price specified by the investor in the form of 'Stop Loss Trigger Price'. When a stop loss trigger price (
order becomes one which is conditional on the market price of the stock crossing the specified SLTP. The or
execution) till the condition is satisfied. Once the last traded price of the stock reaches or surpasses the SLTP
eligible for execution by being taken up in the matching process of the exchange) and once triggered behave
a tool to limit the 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
to limit his losses. 'A' may place a limit buy order specifying a Stop loss trigger price of Rs 345 and a limit pric
(SLTP) has to be between the last traded price and the buy limit price. Once the market price of Reliance bre
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' wou
a limit sell order specifying a Stop loss trigger price of Rs 305 and a limit price of Rs 300. The stop loss trigge
and the last traded price at the time of placing the stop loss order. Once the last traded price touches or cros
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 norma
last traded price should exceed the stop loss trigger price for a buy order is already satisfied. Similarly, in cas
should not be greater than the last traded price for the same reason.

. What are the details to be given to place a fresh order?

Following details should be provided to place a fresh order.

a. Position (Buy/Sell)
b. Stock
c. Quantity
d. Exchange
e. Price - Market
. Are the fresh orders and cover order to be placed together?

Yes, both the orders are to be placed together.

. Should the quantity of fresh and cover be the same?

Yes, the quantity needs to be the same.

. What are the details to be given for a cover order?

The details to be entered for a cover order are

a. Quantity
b. Position
c. Exchange
d. Limit price
e. SLTP
The first 3 values would be automatically picked up from the Fresh order details.

. Can I cancel the cover order?

No, cover order cannot be cancelled.

. Can I modify the cover order?

Yes, you can modify the cover order subject to the Trigger conditions being fulfilled. See conditions Point 6.

You can even modify the cover order to a profit scenario. Assume you take a buy position for the fresh order
of Rs 100/-. Simultaneously you also place the sell (cover order) of 1000 shares as Limit price Rs 90/ and SL
is defined with a view to curtail losses.

If subsequently the current market price shoots up to Rs 110/-. You can modify the order as below Limit price

. What is the quantity that can be submitted for fresh orders?

The max quantity that can be submitted for fresh orders is the total of best 5 Bid/offer quantities that is availa
quantity that you input is greater than the quantity available in the best 5 bids and offers then the order will no
to place a buy order for 5000 shares @100, and the first 5 offer quantity available for the buy order are as un

96.00 97.50
97.00 98.50
Offer Qty.
Offer Price
100
500
500
1000
98.00
1500
 In the above scenario, the first 5 Offer quantity available is 3600 and since the buy order quantity placed is 50
quantity, it would be rejected by the system. Similar would be the case in Sell order, wherein if the total sell q
would be rejected. The maximum order qty to place should be equal to the first 5 bid/offer quantity available a

. What will be the price at which the order will be placed?

For fresh orders the price would be calculated as the weighted average price of the best 5 bids and offers av
available in the best 5 bids and offers and the client places a Buy order for quantity of 4500.

ACC

0 0 0 0 1500 13 8 3000 12.75

5.50 1500 11.50 5 1500 11 Qty
Price Best 5 bids
Best 5 bids Best 5 offers Best 5
0 offers
0
3000
1500
1500
Price
Qty

Calculation of Buy price

52,875 12.75
19,125 11.50
17,250 16,500 Qty
Price Value
4500
1500
1500
11
1500

Weighted average price would be 11.75*(52,875 / 4500).

. What is the margin that is charged on the fresh order?

Margin in case of fresh order is charged to the extent of maximum possible loss that you may incur plus a mi
minimum margin % specified for the stock in the stock list page. It is calculated as
{(Weighted average price of fresh order- limit price of cover order)* Quantity of shares} + {(Weighted average
shares) * minimum margin% for the stock}

Margin is blocked as per the above formula on order placement and adjusted further based on the actual exe
position for the fresh order of 1000 shares at current market price of Rs 100/-. Simultaneously you also place
as Limit price Rs 90/-SLTP Rs 95/-.The minimum margin percentage for the scrip is 10%.

In this case margin amount would be blocked as

(Weighted average price of fresh order * quantity of shares)* minimum margin% +( weighted average price o
quantity of shares

(100*1000)*10%) +(100-90)*1000)
Rs.20,000/-

. Would the Margin be recalculated when the order gets executed?

Yes, at the time of order placement the current market price at that point of time is considered. It may happen
price than the one at which limits have been blocked.

. Would the margin be recalculated at the time of modification?

Yes, it is recalculated and excess amount if any will be released or additional margin needed will be blocked

In the above example if you modify the SLTP to Rs. 97/- and limit price to Rs 92/-.The amount to be blocked
(100*1000)*10%) +(100-92)*1000)
Rs.18000/-
The excess amount of Rs. 2000/- would be released and added in your limit.

In the above example if you modify the limit price to Rs 88/-. difference amount would be recalculated as
(100*1000)*10%) +(100-88)*1000
Rs.22000/-
Additional amount of Rs 2000/- would be blocked. If limits are insufficient then you will be unable to modify th

. Is the difference % between trade price of Fresh order and Limit price of Cover order different for diff

Yes, ICICI Securities Ltd would define the difference percentage for different stocks depending upon the vola

. What is the difference between limit price and SLTP price that can be specified for a cover order?

Depending on the stock volatility and market situation, ICICI Securities Ltd would specify the minimum % diff
price that can be maintained for a particular stock. You can however specify a greater difference as well.

Example: A 5% difference has to be maintained between the limit price and SLTP for ACC.

You have taken a buy position (fresh order) for 1000 shares in ACC at Current price of Rs 100/-.You specify
shares in ACC at SLTP of Rs 95/-.Since this is a sell order the limit price would be lower than the SLTP. Limi
 and below.

If any price between 90.25 and 95 is specified the order cannot be placed.

. Will this gap not affect the investor adversely?

No, In case of MarginPLUS product ICICI Securities Ltd would collect the difference between the trade price
cover order which is the maximum loss amount. There is no margin on this. However, it may so happen that
converted to limit price, the orders may get executed at the best available price which would be at better than
loss. Hence it is the SLTP price is important to be considered and not the gap between trade price of the fres
Let us the understand the concept in the below given example:

Given that a 5% difference has to be maintained between the limit price and SLTP price

You have taken the buy position for 1000 shares in ACC at current price of Rs.100. You have specified the c
Rs.95 and a limit price of 90. .The difference amount collected would be (100-90)*100 . Rs.10,000/-

In the above scenario, if the order gets triggered at Rs.95/-, it may so happen that order may get executed at
available. In such a case, the loss would be recalculated as (100-92)*1000 = Rs.8000/- which is lower than th
amount collected as loss for Rs 2000/- would be released back. Hence the client is no way affected by the ga
and limit price of the cover order.

. What is the difference between limit price and SLTP price that ICICI Securities Ltd would specify for a

ICICI Securities Ltd would define the difference depending upon the volatility of the scrip and the market cond
be revised by ICICI Securities Ltd even during the day. Existing orders would be unaffected by the revision b
the revised percentage would apply.

. How does the concept of MarginPLUS work?

Example
Assume you take a sell position for the fresh order of 1000 shares at current market price of Rs 100/-. Simult
order) of 1000 shares as Limit price Rs 112/-.SLTP Rs 108/-.

The above example can be analyzed as follows

Apart from a minimum margin on the fresh order value, the maximum loss amount would be blocked on the f
current market price and limit price. (112-100)*1000= Rs 12, 000/-. The fresh order is a market order which w
available at that point of time. If the order gets executed as Rs 101/- Revised amount of Rs 1000/-would be r
in the ordered state.

Current market price rises- Position is making a loss: Once the current market price starts rising and reaches
triggered to a limit order with price Rs 112/-.The order would get executed at the best prices available up to th
market price falls- Position is making a profit: You can modify the buy order to a market or limit order with SL
position at a profit.

. What happens to the open position created at the end of the day?

The open position would be squared off at market price by ICICI Securities Ltd at the end of the day. In Case
created for the day are expected to be squared off by the customers before the market closes. In case, if the
 Securities Ltd would initiate the Square off process at market price for all the open positions.

. Will there be any Mark to Market process like in Margin trading?

No. Since the feature of MarginPLUS cover order is available which also indicates the maximum downside in
no need of mark to market process.

. Can I do convert to delivery?

No. You do not have the option of convert to delivery

. Do I have the option of Add Margin?

No. The option of Add Margin is not available, since it is not relevant due to absence of market to market pro

. Where do I view my open positions?

You can view your Open positions in Open MarginPLUS position page.

. Can ICICI Securities Ltd disable a scrip from MarginPLUS during the day?

Yes, ICICI Securities Ltd can disable a scrip from MarginPLUS during the day.

. What will happen to the MarginPLUS orders that I have placed in such disabled scrip's?

You will be unable place new orders in such scrip's. However you can modify the orders already placed. You
off such orders modify it to a market order.

. What would be the brokerage payable on these trades?

The Brokerage would be the normal brokerages that are charged for margin orders.

Taxation for Resident Indians

. Adequate efforts have been taken to ensure that material contained in this website is error free. The material
particular matter. Visitors to the site should cross check all the facts, law and contents with the text of the pre
professional advice before acting on the basis of any information contained herein. ICICI Securities Ltd expre
person, in respect of anything done or omitted to be done by any such person by placing reliance upon the co
mentioned FAQs are restricted to the tax implications for the resident investors only.

. I buy and sell securities; do I have to pay tax on these transactions?

Yes, you are liable to pay tax on these transactions: on the difference between the price at which you sell and
 can also claim deduction for expenses incurred to acquire these securities along with cost of buying these se
held for long term before selling them, your cost of acquisition can be increased by the indexation, which will
benefit is not available on debentures and bonds. In case these securities are held as stock-in-trade i.e. if you
selling securities, the profit and loss from purchase and sale of securities will be taxed under the head "Profit

. What is the nature of income under which transaction in securities will be taxed?

Profit and loss from purchase and sale of securities will be taxed under the head of income from "Capital gain
investments by you. In case these securities are held as stock-in-trade i.e. if you are in the business of buyin
loss from purchase and sale of securities will be taxed under the head "Profits or gains of business or profess

. What is assessment year?

The year in which the income of the respective financial year will be subject to tax is known as assessment y
2004 has corresponding assessment year 2004-2005.

. What is previous year?

The respective financial year whose income is considered for the purposes of taxation is called previous year
is the financial year immediately preceding the assessment year. In other words, the year for which the incom
Year constitutes a period starting 1 April of a particular year and ending 31 March the next year. 1 April 2003
previous year. Income earned during this period will be subject to tax in the assessment year 2004-2005

What is capital gain/loss?

.
Capital gains/loss mean any profit or loss arising from the transfer of a capital asset effected in the previous y

What is a capital asset?

.
Capital asset means property of any kind held by an assessee, whether or not connected with his business o
Stock-in-trade 2. Personal effects such as jewellery, furniture, motorcar held for personal use. 3. 61\2 % Gold
1980. 5. National Defence Gold Bonds, 1980. 6. Special bearer Bonds 1991 7. Gold deposit Bonds under the
the central government.

What is transfer of a capital asset?

.
Transfer includes sale, exchange or relinquishment of the capital asset or the extinguishments of any rights t
under any law. In a case where an asset is converted by the owner or treated by him as stock-in-trade of a bu
conversion or treatment by him, is also treated as transfer. However, the following specific transactions are n
distribution of capital assets on total or partial partition of an HUF(a) any transfer of a capital under a gift or w
debentures or warrants allotted to employees under approved ESOP scheme, (b) issue of shares by the resu
of shares held in the demerged or amalgamating company (provided in case of amalgamation, the amalgama
any transfer by way of conversion of bonds or debentures of a company into shares or debentures of that com
the resulting owner sells the capital asset subsequently, the cost of acquisition shall be deemed to be the cos
acquired by the previous owner. In case of (c) and (d, the cost of acquisition shall be the cost of the original s
demerger, it shall be the portion of the cost which bears to the total cost the same proportion as the net book
demerger bears to the networth of the demerged company immediately before such demerger. The cost of a
stand reduced correspondingly.

What is the tax treatment on granting, vesting and exercise of ESOPs and sale of shares resulting the
.
No perquisite tax is attracted on the grant, vesting and exercise of the stock options provided the stock option
is in conformity with the guidelines issued by the CBDT for this purpose. In effect such scheme enjoys single
capital gains on sale of the shares. In all other cases, perquisite is charged at the time of exercise of shares o
the employer. On subsequent sale of such shares, the perquisite value so charged will be deemed as the cos
 What is a short term asset?
.
Capital asset is divided as long term and short term with reference to the period of holding of the asset by yo
from the date of acquisition to the date immediately preceding its sale. If the shares, units of specified mutual
security are held by you for less than 12 months then such shares/units or listed security would be treated as
the asset is required to be held for 36 months so as to qualify for long-term capital gain.

What is a long term asset?

.
If the shares, units of specified mutual fund u/s 10(23D) or any other listed security are held by yo
shares/units or listed security would be treated as long term assets.

To illustrate, if you have purchased and sold shares on the following dates, they would be treate
asset as below.

18.6.2002 2 years 4
months Long term
asset 1.4.2001 9
months 12 days
Short term asset
31.10.2001 17
months Long term
asset 31.10.2001 7
months Short term
asset 4 months 2 Date of sale Period of holding Type of asset
days Short term
asset Date of
Purchase

14.2.1999
18.6.2000
11.5.2000
1.4.2001
3.8.2001
1.4.2001

The period of holding for the above purpose could be different from the actual period of holding in

• In case the shares or securities are held in a company in liquidation, the period subsequen
goes into liquidation shall be excluded.

• In case the shares or securities have been acquired as gift or under will, the period of holdi
the asset was held by the previous owner.

• In case the shares or securities held in an amalgamating company, the period of holding w
shares have been held by the assesse in the amalgamating company.

• In case of shares subscribed to by the person to whom such a right issue is offered or who
 person, the period of holding of the shares for the first person shall be reckoned from the date o

• In case a person has renounced his right to subscribe to certain shares in favour of another
such rights for the first person shall be reckoned from the date of offer of such right by the com

• In case of shares or securities have been acquired as a bonus issue, then the period of
reckoned from the date of allotment of such shares.
. What is previous year?

The respective financial year whose income is considered for the purposes of taxation is called previous year
is the financial year immediately preceding the assessment year. In other words, the year for which the incom
Year constitutes a period starting 1 April of a particular year and ending 31 March the next year. 1 April 2003
previous year. Income earned during this period will be subject to tax in the assessment year 2004-2005
. In case of physical securities, specific identification of shares sold and their cost is possible t
shares. Hence, capital gains on sale of such securities can be accurately determined. How
dematerialized form which become fungible after losing their distinctive numbers and no spe

For such shares, the cost of acquisition and the period of holding shall be determined on FIFO basi

Each Demat account will be considered separately for the purpose of determining period of holding

Example 1:

You bought Shares of ACC on the following dates.

140 650 400

250 Date

19.3.2003 Quantity
18.12.2002
17.10.2001
18.6.2000
500
15.6.1999

You sold all these shares on 15.4.2003, the shares would be treated as short term or long term

140 Less than 12 Quantity Period of holding Nature

months Short term
asset 650 Less than
12 months Short
term asset 400 More
than 12 months
Long term asset 250
More than 12
months Long term
asset More than 12
months Long term
asset Date of
 purchase

19.3.2003
18.12.2002
17.10.2001
18.6.2000
500
15.6.1999

1150 shares would be treated as long term asset and the remaining 790 shares as short term a

Example 2:

You bought Shares of ACC on the following dates.

400 Date
Quantity
17.10.2001
500
15.06.2001

21.07.2002 400 Less

than 12 months
Short term asset
21.07.2002 300 More
than 12 months
Long term asset
16.06.2002 50 More
than 12 months
Long term asset 150 Date of sale Quantity Period of holding Nature
Less than 12 months
Short term asset
Date of purchase

17.10.2001
15.06.2001
15.06.2001
11.04.2002
15.06.2001

Though shares were purchased on 15.06.2001, they are classified as short term asset or long term
which they were held.

The sale on 21.07.2002 comprises of shares acquired on different dates and is treated as short term
upon the date of purchase.
. What is the tax treatment of shares which are bought and sold but do not result in deliveries (as in ca
 Since these transactions do not result into delivery, they would be treated as speculative transactio
such transactions would be considered as Profits and Gains from Speculation Business.

However, where margin transactions are undertaken as a hedge to guard against losses in holdin
speculative. Therefore, profits and losses from such transactions would be considered asnon-specula
. What is long term capital gains/loss?

Gain or loss calculated on long term assets is called long term capital gain or loss.
. What is short term capital gains/loss?

Gain or loss calculated on short term assets is called short term capital gain or loss.
. How to compute short term capital gains?

Short term capital gain is simply calculated as difference between (Sale price - purchase cost
acquiring these shares).

It will be included in the computation of tax along with other heads of income under the head "Cap

Depending on the slab of the tax rate under which you fall based on your total taxableincome, tax r

In case there is a short term loss it will not be included in the computation but rules for set off and
and carry forward of capital gains in question no....(ISEC to provide link to the question).

Example:

You purchased 5000 shares of ACC on 21.5.2003 at an average price of Rs 155/- per share and s
Rs 165/-.

This sale of capital asset will be treated as short term asset and will be subject to short term capital

50000 5000*155 775000

825000
Amount in Rs
Short term capital gains
Less Cost of purchase
5000*165
Sale consideration

Cost of purchase will include brokerage paid on purchasing the shares.

Deduct the brokerage incurred on sale of shares.

Assuming you have a salary income of Rs 3, 00,000/- for previous year 2003-2004, the comput

Total Head of Income Rs Rs

Taxab
le
Incom
e 3,
 17,50
0
Incom
e from
Short
term
capital
gains
50,
000
Capita
l
Gains

Net
Salary

2,67,5
00
Profes
sion
Tax
2,500

Stand
ard
Deduc
tion
30,
000
Incom
e from
Salary
3, 00,
000

III

II

Less
Less
I

. Can brokerage/any other expenditure paid on purchase and sale of shares be deducted for
 loss/gain?

Yes, brokerage/ any other expenditure paid on purchase of short term asset can be added to the co
other expenditure paid on sale of short term asset will be deducted from the sale consideration.
. How to compute long term capital gain?

The long term gain or loss on sale of shares which you have classified as long term asset can be cal

Sale consideration received on sale of shares

Deduct: Cost of acquisition of the shares

Expenditure incurred wholly and exclusively in connection with the sale of such shares
. What is indexed cost of acquisition of shares?

In case of shares held for a period of more than one year, the cost of acquisition can be indexed
shares purchased can be adjusted for the rise in prices.

The cost of acquisition above can be indexed for inflation factor as below

Cost of acquisition * cost inflation index of the year in which shares where sold
______________________________________________________________

Cost of inflation index of the year of acquisition

(Or)

Year beginning on 1-4-1981

Whichever is later.

However, the indexation benefit is not applicable in case of bonds and debentures.

Example:

You bought shares of ACC on 1.5.1997 1500 at Rs 165/-.

These shares were sold on 1.8.2000 at Rs 251/-.

Computation of long term capital loss/gain (without indexation benefit).

1,29, 000 2,47, 500 3,76, 500

Amount in Rs
Less: Cost of acquisition 1500*165

Sale consideration
1500*251
 Computation of long term capital loss/gain (with indexation benefit).

72,920 3,03, 580 3,76, 500

Amount in Rs
Less: Cost of acquisition 1500*165 , 47, 500*406/331

Sale consideration
1500*251

. What is a speculative transaction?

Speculative transaction means a transaction in which a contract for the purchase or sale of any com
is periodically or ultimately settled otherwise than by actual delivery of or transfer of commodity o

However, amongst other situations, a contract in respect of stocks and shares entered into by a
against loss in his holdings of stocks and shares through price fluctuations will not be treated as spe
. What are the implications if a transaction is treated as speculation transaction?

The profit and loss from such speculation transaction would be treated as income from speculation
Gains from Business/Profession. Profit if any from speculation would be taxed at the normal rate
business income.

Any loss, computed in respect of a speculation business carried on by the assessee, shall not be set
if any, of another speculation business.
. I purchased shares after 1 March 2003, will the transaction be subject to capital gains tax?

In case of shares purchased after March 1, 2003 but before March 1,2004, long term capital gain arising form
recognized stock exchange will not be subject to tax. However, this benefit is available to specified listed sha
index of the Bombay Stock Exchange as on March 1, 2003 or allotted in a public issue and listed before Marc
sold and are liable to short term capital gains then they would be liable to tax.
. Do I have to compulsorily take the benefit of indexation?

Presently, for the purposes of computation of long term capital gains, an option is available
surcharge) without indexation or 20% (plus applicable surcharge) with indexation in case of share
take benefit of indexation and can opt for any method of computation of long term capital gains, w
indexation benefit is not applicable in case of bonds and debentures.
. Is there any difference in tax rate if benefit of indexation is taken and if it is not taken?

Yes, as per the prevailing laws as per Finance Act, 2003 the rate of tax on long-term capital gains
applicable surcharge) and without indexation benefit is 10%(plus applicable surcharge).

Long term loss can be carried forward and set off

as per rules for set off and carry forward.

. Where can I get the cost inflation indexation factor?

Cost of Inflation index factor is listed below.

2003- Financial year Cost of inflation Index
2004
463
2002-
2003
447
2001-
2002
426
2000-
2001
406
1999-
2000
389
1998-
1999
351
1997-
1998
331
1996-
1997
305
1995-
1996
281
1994-
1995
259
1993-
1994
244
1992-
1993
223
1991-
1992
199
1990-
1991
182
1989-
1990
172
1988-
1989
161
1987-
1988
150
1986-
1987
140
1985-
1986
133
1984-
1985
125
1983-
1984
116
1982-
1983
109
100 S.
No
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1981-1982

1
. Are different rates to be applied for short term capital gains and long term capital gains?

Yes, as discussed above short term capital gains will be included along with other heads of incom
tax rate relevant for the assessment year.

Long term capital gain will be subject to tax rate of 10%(plus applicable surcharge) if indexation b
20%(plus applicable surcharge) if indexation benefit is taken.
. I have Income from other heads of income and also from long term capital gains?

How will tax be computed?

Income from long term capital gains will not be included in the gross total income.

It will be taxed separately as per the applicable tax rate subject to the applicable provisions of Incom

Example:

You have long term capital gains of Rs 75, 000/-. You have Income from other sources as Rs 125,

In this case tax on Rs 1, 25, 000/- will be computed as per the normal slab rates.

For A.Y (2004-2005) - normal slab rates:

30% 20% Up to Rs 50, 000/-

Nil
Above Rs 1, 50, 000
Rs 60, 001/- to Rs 1, 50, 000/-
10%
Rs 50, 001/- to Rs
60, 000/-

Plus surcharge as under in case of :

Individuals

• If the income exceeds Rs.8.50 lacs 10%

• If the income exceeds Rs.8.50 lacs Nil

Companies 2.5%

For the sake of simplicity in computation of income in our examples, we are assuming that yo
below Rs.8.50lacs)

So total tax on Rs 1, 25, 000/- would be Rs 14, 000/-

 Tax on long term capital will be @20% Rs 15, 000/- (assuming indexation benefit is not availed.

Total tax would be Rs 29, 000/-.

. What will the calculation if the total income after excluding long term capital gains if less tha

In case the total income after excluding long term capital gains is less than the maximum amount
000/- in case of individuals, HUFs etc. Then the long term capital gains has to be reduced by th
falls short of themaximum amount Rs 50, 000/-.

Example:

You have long term capital gains of Rs 75, 000/-. You have Income from other sources as Rs 25, 0

In this case tax on Rs 25, 000/- will be Nil since it is less than the maximum amount that is non tax

Tax on long term capital will be @20% on Rs (75, 000 - 25, 000)

i.e. 20% of Rs 50, 000.

Total tax would be Rs 10, 000/-.

. I have received shares in my Demat account as a part of the bonus issue? What will be the cos

Cost of acquisition of these shares will be Nil.

The net sales proceeds from the shares will be treated as capital gains.

Period of holding of these shares will be reckoned from the date of the allotment of such issue.

Example:

You purchased 1000 shares of ACC on 10.6.1999 for Rs 1, 10, 000/-.

You were allotted 1000 shares as bonus on 11.8.1999.

You sold these shares on 12.8.2000 for Rs 1, 30 000/-.

Calculation of long term capital gains would be as follows:

15, 193 Nil 1, 14, 807 1, 30, 000

Long term capital gains Amount in Rs

Cost of 1000 Bonus shares
Cost of 1000 Shares purchased on 10.6.2000 110000*406/389 (indexation benefit)

Sale consideration

. What are rules for set off of gains from one capital asset with loss from another capital asset?
 Loss from short-term capital assets can be set off against gains from any long or short term capi
term capital assets can be set off against gains from other long-term capital assets only.
. What are rules for set off of loss from one head against income from another?

1. Where in respect of any assessment year, the net result of the computation under any
gains", is a loss and you have no income under the head "Capital gains", then you shall be entitled
off against income, if any, assessable for that assessment year under any other head.

2. Where in respect of any assessment year, the net result of the computation under any
gains", is a loss and you have income assessable under the head "Capital gains", such loss ma
assessable for that assessment year under any head of income including the head "Capital gains" (w
assets or any other capital assets).

3. Where in respect of any assessment year, the net result of the computation under the h
assessee has income assessable under any other head of income, the assessee shall not be entitl
income under the other head. The amount of such loss can be carried forward for setoff against
upto eight years immediately succeeding the year in which the loss was first computed.

4. Any loss, computed in respect of a speculation business carried on by the assesse, shal
and gains, if any, of another speculation business. Where in respect of any assessment year
speculation business has not been wholly set off as above, so much of the loss as is not so set off
has no income from any other speculation business, shall, be carried forward and allowed to s
speculation business of the assesse for eight assessment years immediately succeeding the assessm
computed.
. How would be buy back of shares by a company be treated for tax computation?

Where a shareholder receives any consideration from any company for purchase of its own shares
between the cost of acquisition and the value of consideration received by the shareholder shal
arising to such shareholders in the year in which such shares were purchased by the company.
. I have soldsecurities on which long term capital gains have arisen. Is there a way I can get this capita

Capital gains tax arising on sale of securities can be saved fully or partly as under:

a Long-term gains can be invested fully or partially within a period of 6 months from the date of transfe
54EC viz. NABARD, NHAI, REC, SIDBI, NHB. The investment will have to be held for a period of 3 years
availed of will be withdrawn in the year of sale.

b Long-term capital gains can be invested fully/partially within a period of 6 months from the date of tra
company as specified under section 54ED. The investment will have to be held for a period of 1 year, els
availed of will be withdrawn in the year of sale.

c Long term gains can be invested for purchase of new house under section 54F within a period of 1 y
3 years from the date of transfer provided:

i. no other house is owned by the employee on the date of transfer, and,

ii. no other house is purchased or constructed within a period of 1 or 3 years respecti

The unutilized capital gains should be deposited in specified Capital Gains Account Scheme in the intervenin
. I also trade in equity derivatives (futures and options), How would the resultant profit and loss be trea

The taxation of derivative transactions is not specifically dealt with under the Indian Income-tax Ac
interpretations viz. derivatives transactions are pure business transactions and hence, the income
normal business income / loss.The other view is that derivatives are covered under the definition of
43(5) of the Act in absence of delivery of the underlying security or commodity.

Under the Act, speculative profits/losses are allowed to be setoff only against speculative losses/p
speculative losses are allowed to be carried forward for 8 immediately succeeding assessment ye
forward speculative losses is allowed to be setoff only against speculation profits.

In view of the aforesaid, there is a risk of such derivative transactions being treated as speculative t
the client is advised to consider the tax implications of entering into derivative transactions.

A high level panel consisting of a special three-member committee had been set up by the Dep
definition of `Speculative Transactions' with respect to trading in financial derivatives. The commi
of speculative transaction in Section 43(5) is fairly obsolete when viewed against the latest de
According to press reports, it is likely that the derivative transactions will be put outside the ambit
the recommendations of the Committee and looking at the Government's commitment to deepen
Committee is yet to take a final view and is expected to submit its report soon.

Corporate Benefits

. What is a Book closure/Record date?

The registered shareholders of the company are entitled to corporate benefits such as dividend, bonus, rights
time to time. Since, the ownership of shares of companies traded on the stock exchange is freely transferable
the persons entitled to the benefits, all transfers of securities have to be registered with the company (this is r
physical form). Since transfer of securities is a continuous process open any time, the company announces c
members on the register of shareholders as of these cut off dates are entitled to the benefits. Such cut-off da
company might choose the close the register of shareholders for registration of transfer during a specified pe
before the commencement of the book closure or on or before the record date are considered for the purpose
its books for more than 30 days at stretch for a book closure, and not more 45 days in a year. The period bet
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
holders. This was done to determine the number of registered members who were eligible for the Bonus 3:5
transfer of shares was operational till 5th July'96. The company announced a No Delivery period from 12th Ju
Closure. During this period, trading was permitted in the securities but the trades were settled only after 9th J
were not be eligible for the Bonus 3:5 and a 40% dividend. The first day of the No Delivery period is consider
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, t
of security holders. Record date is a cut off date ( in the above example '5th july96) for determining the numb
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, trading is permitted in the security. However, these trades are settled only after the No-Delivery perio
 period is the ex-date of the settlement.The settlement is clubbed with the settlement of the week whose pay-o
delivery period. This is done to ensure that investor's entitlement for the corporate benefits is clearly determin
extends to all weekly cycles touched from 15 days prior to the record date and 4 days subsequent to the reco

. 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, bon
book closure/record date is fixed, the buyer of the shares on or after the ex-date will not be eligible for the be
for the same.

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 e
respect of the financial year in which these are issued. These shares are known as NPP shares, which like th
part of the dividend. If you hold more than one class of shares for a single stock, the holdings appear separat
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 thei
compensate, the buyer to whom these new shares are delivered, for loss of pro rata dividend, the NPP benef
NPP shares. Thus if you sell of NPP shares you will have to pay, the dividend declared in respect of ordinary
deducted from the sale price. This old-new compensatory value(ONCV) is referred to as 'new share dividend
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
pertaining to the distinctive nos. and the rate of dividend payable.

FAQ NSC-KVP

.What is the maturity period of these schemes?

The maturity period for NSC is 6 years and for KVP is 8 years and 7 months.

.Is payment guaranteed on maturity?

NSC and KVP are issued by the Department of Posts. Payment on maturity is guaranteed by the Govt. of Ind

.What is the role of ICICIdirect?

All applications made through ICICIdirect shall be forwarded to the Department of Post by ICICIdirect who wo
Government.

.When is Interest Payable?

In case of NSC, interest at 8% is payable compounded half yearly and Rs. 1000 invested becomes Rs. 1601
In case of KVP, interest is payable at 8% compounded yearly and Rs. 1000 becomes Rs. 1850.93 after 8 yea

.What shall be the value date? How is the same determined?

Value date is the date from which the investment NSC/KVP starts earning interest. In the case of investments
day i.e. business day the value date would be the two working days at Mumbai after such business day.
Investment made on Saturday or other holidays (whether in Maharashtra or in the State where your bank acc
next business day's value date.

.I have already invested in NSC/KVP through other agent and have physical certificate allotted. Can I
in to the demat account linked my ICICIdirect trading account.

No. Existing investments cannot be dematerialized. Similarly once certificates are issued in demat mode, can

Can I view my holdings Online?

You can also view the holdings on the Demat Balance page by clicking on the link 'Allocate'.

.How can I appoint a nominee in my Postal Savings Investment?

The nominee specified by you with ICICI Bank in respect of your demat account number will be considered a
KVP also once the certificates are credited to your demat account.

.How can I redeem the bonds?

On maturity of NSC/KVP, the Post Office would arrange to give credit to your bank account directly which ha

.Can I transfer my NSC/KVP investments prior to maturity?

Yes. You can transfer your NSC/KVP units at any time before their maturity date to your own alternate dema

Can NSC/KVP units be transferred from Resident Indian (RI) to Non resident Indian (NRI) account or v

No. NSC/KVP units cannot be transferred from RI to NRI account or vice versa.

How can I transfer my NSC/KVP units?

To transfer your NSC / KVP units, please send the following documents at the address stated below:

1. The Transfer Application form

2. Demat Holding Statement of your source Demat account.
3. Your Client Master List for the Target and source Demat account issued by the respective Depository
4. A Cheque drawn in favour of ICICI Securities Limited for Rs.55/- towards the transfer charges for eac
5. A duly attested copy of your PAN Card
6. Death Certificate in case a legal heir is making this application upon death of holder
7. Valid certification in case of change in name of holder post marriage

The above documents may be sent at the following address :

Attn: Mutual Fund Operations Team

ICICI Securities Limited
Shree Sawan Knowledge Park,
Ground Floor, Plot No. D-507, T.T.C Ind Area,
M.I.D.C, Turbhe, Opp Juinagar Railway Station,
Navi Mumbai - 400705
Can my Application form be rejected by ICICI Securities Limited?

Yes. If the application form does not contain the relevant details or is not accompanied with the prescribed do
process the application . Hence, please ensure that you mention all relevant details in your application form.

Can I use one Application form for transferring all the NSC/ KVP units held by me?

No. You need to fill a separate application form for each Application Number of your NSC / KVP units.

What happens once I submit my forms to ICICI Securities Limited?

On receipt of your duly filled documents at the Corporate Office, I-Sec will forward the same to the General P
scrutiny. The GPO will forward the complete set of documents, after satisfactory verification, to NSDL for furt
verification of your documents, arrange for the transfer of your NSC/ KVP units.

Can my transfer request be rejected by GPO/ NSDL and if so, on what grounds?

Yes. Your transfer request may be rejected by GPO/ NSDL in case the documents are not as per the prescrib
some of the reasons that may lead to rejections:

1. Mismatch in your name as it appears in your account and your application form i.e ABC to ABC and
2. Mismatch in mode of holding as specified by you i.e if earlier you had single holding, the mode in you
holding
3. Mismatch in the order of the name i.e. If in your application form you have specified your name as AB
BAC
4. Transferee account is not held under NSDL

In how much time will my NSC/KVP units be transferred?

ICICI Securities Limited shall process the Transfer request on best effort basis within a reasonable time.

However, please note that processing of your NSC/KVP units is dependent on Third parties, independent of I
cannot be committed by I-Sec, we observe that an accurately filled Request form takes approximately 20 wor

I-Sec will not be responsible for any loss of documents or delay in processing of the request as there is a thir

How will I know about the status of my transfer request?

The status of your transfer request will be updated in the "My Messages" section of your trading account from
www.indiapost.gov.in or nsckvp@nsdl.co.in to know the status of your request.

FAQ GOI Savings Bonds

· What are different kinds of bonds available? What is the maturity period? Top

Currently 8% Savings (Taxable) Bonds are available. The same are available online through ICICIdirect.The
6 years without any early redemption option.

· Who issues Savings bonds? Is payment guaranteed on maturity?

Saving Bonds are issued by the Government of India. As these bonds are sovereign in nature, payment is gu
· Who can invest in Saving Bonds through ICICIdirect?

All Individuals and Hindu Undivided Families (HUFs), who are customers of ICICIdirect can invest in these Bo

· What is the role of ICICI Bank?

All applications made through ICICIdirect shall be handled by ICICI Bank who would act as a RBI authorised
allot the Bond Ledger Account (BLA) no. for the investments made through ICICIdirect.

· What is the minimum and maximum permissible investment?

The minimum permissible investment for 8% Savings Bonds is Rs.1000/- and in multiples of Rs. 1000/- there

There is however is no maximum limit of investment.

· How do I apply for Saving Bonds through ICICIdirect?

For investing in Saving Bonds you will need to first allocate funds for the purpose of investing. You will need
and allocate funds for investing in “Mutual Funds, IPO and Others”. Once sufficient funds have been allocate
clicking on the button for GoI bonds. Thereafter click on the place order button and apply for Bonds by filling

· When is Interest Payable?

Interest is payable at half-yearly intervals from the date of issue or compounded with half-yearly rests, payab
the investor may choose. The interest payment dates are 1st July and 1st January every year.

· How would I receive the Interest?

The interest on your Saving Bonds would be directly credited to your ICICI Bank account linked to ICICIdirec

· What is the value date? How is the same determined?

Value date is the date from which the bond starts earning interest. In the case of investments in Saving Bond
made before 2:30 p.m. i.e. the cut-off time, would receive the value date as the transaction date. All investme
the next business day’s value date. Investment made on Saturday or other holidays would receive the next b
processing of applications would be at Mumbai, bank holidays as applicable in the State of Maharashtra wou
considered as Business Day.

For e.g.: Investment made on June 9th before 2:30 p.m. would receive the value date of June 9th itself. Howe
June 9th, after 2:30 p.m. the value date would be of June 10th. If June 10th and 11th fall on a Saturday and S
would be of the next business day i.e. June 12th. If June 9th is a bank holiday in Maharashtra, even for inves
value date shall be June 13, Monday.

· Will I receive any confirmation for the transaction?

Yes. an e-mail will be sent to you detailing the transaction.

· When will I receive my Bond Ledger Account number?

As soon as the bonds are credited to your Bond Ledger Account, an e-mail will be sent to you specifying the
number of bonds held. You can also view your Bond Ledger Account number on the Portfolio Page and the O
ICICI Bank will also send a certificate of holding detailing your investment. This should reach you within 15 da
Account number.
 · Can I view my holdings Online?

In case you wish to view your holdings online, please click on the option “portfolio” in the GoI Bond Page. Yo
in 8% Saving Bonds through ICICIdirect.

· Are joint holders permitted?

As your e-broking account is a single account, all investments through icicidirect.com in 8% Saving Bonds wo
holdings would be permitted.

· How can I appoint a nominee for my Bonds?

In case you wish to make any nomination for your Bonds, you shall have to download the nomination form pu
duly filled form. You can see the status of your nomination on the website on the “order book” and the “portfo
have to fill up the nomination details on the nomination page on the site itself otherwise the nomination will no

· How can I redeem the bonds?

On maturity of bonds you would need to discharge your Certificate of Holding and submit the same to the nea

· In case I do not encash the bonds on expiry will I continue to earn interest?

No interest would be payable after maturity in case the bonds are not encashed.

· Can I transfer the bonds prior to maturity?

8% Saving Bonds are non–transferable except by way of gift to a relative as defined in Section 6 of the Indian

· What are the tax benefits available?

Interest on 8% Saving Bonds will be taxable under the Income-Tax Act, 1961 as applicable according to the r
However these bonds will be exempt from Wealth-tax under the Wealth-tax Act.

· Is Tax deductible at source on the interest payment in case of 8% Saving Bonds?

In case of 8% Saving Bonds tax will be deducted at source while making payment of interest on the non-cum
credited to Government Account. Tax on interest portion of the maturity value will be deducted at source at th
proceeds on the cumulative bonds and credited to Government Account.

· Can I use these bonds as collateral for obtaining loans?

No, the Bonds are not tradable in the secondary market and are not eligible as collateral for loans from banks
Financial Companies, (NBFC) etc.

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
and a host of research based tools to help you make better decisions. We will also offer a comprehensive ma
latest update on markets, trends, news and events affecting the markets.
 Password

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

If you have filled up the application forms for E-invest account directly without registering on the site, We wou
password by normal post / courier in a sealed envelope. You need to activate your account for trading by visi
the Customer Service page.

. How do I Change my password:

You can change your password anytime by accessing our Customer Service Section. In fact we strongly adv
password for added security. Your password must have minimum 8 characters and not more than 12 charact
alphanumeric, and preferably with one special character. As per NSE prescribed guidelines, you need to cha
login after the 14th day from your previous change of password, you will be taken to the "Change Password"

. If I have forgotten my password or if my account gets locked, then what do I do?

If you have forgotten your password, you could place a request for a new password or unlock your account b
for new password link on the Customer Service page.

. If I am requesting for new password then how will I receive my password?

You will receive your password at your communication address which is updated with us within 6 working day
password on Unlock account / Request for new password link available on the Customer Service page.

Security
. How secure are my transactions?

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

We use two level of securities on our web site : Secure Socket Layers (SSL) and 128 bit encryption technolo
available security standard on our web site. This is a worldwide standard of security adopted by all internation
of sending private documents through the internet by using a private key to secure messages. Data encryptio
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 ac
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, eve
Logon Id and Password that are known only to you.

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
required before placing a buy order or a margin sell order would depend on the value of the order and whethe
 Segment' or the 'Margin Segment'. In case of a Cash Order, 100% of the order value is required while for a M
order value is required.

. 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 T
earn the normal interest, which is applicable to the Bank Account. In fact if you have not used this money wh
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 sam
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 th
exchange only after 2-3 settlements . Please check the list of stocks in no delivery. However, you need not w
Delivery trades and ensure that your Trading Limit gets updated on the appropriate day.

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
where we shall be putting up terminals, and access our site on the Internet. You can also walk into any cyber
ICICIdirect.com for online investing. You may also call on our Customer Care numbers to trade through the fa
officers would place orders on your behalf after a thorough authentication.

Transaction Statements
. Equity & Derivatives Segment:

Details of transactions executed in your ICICIdirect account are made available to you on your e-mail id vide
also posted on our official website www.icicidirect.com. Clients can view/take printouts of the same by loggin
selecting the option of Digital Contract Notes on the Customer Service page

Further, details of the orders placed on a trade date is provided to clients vide emails giving information of the
on a daily basis.

In addition to the above, ISEC also issues physical transaction statements on a quarterly basis for all trades e
statements are despatched by the end of the succeeding month of a calendar quarter.

Mutual Fund Segment:

As an intermediary for distribution of mutual funds, ISEC enters into arrangements with various Asset Manag
buying of mutual funds primarily through the website www.icicidirect.com. Pursuant to the arrangement, in co
issues physical statements at the end of every month for mutual fund transactions entered by the clients in th

In addition to the above, annual Mutual Fund statements are also issued to clients.
 Kindly note that the afore-mentioned details are as per the current company policies and are subject to chang
company requirements.

To place a request for statements, you could visit the Request for duplicate statement link on Customer Serv

CALL N TRADE

Trade effortlessly over the phone with the ICICIdirect.com CallNtrade® facility. You can place orders in Equit
own convenience by calling at any of our below mentioned Customer Care numbers, and our well trained exe
them on your behalf after due verification.

This facility is especially useful for those of our customers who are on the move or prefer to trade over phone

9897308000 6630 9890 Andhra 98495 78000 9829222292 9954108000

West Bengal: Pradesh: Assam:
9933008000
UP East:
9936218000
UP West:
9897308000
Ranchi:
9934008000
Siliguri:
9815558000
9890478000
9934008000
28307777
Orissa:
9938488000
North East:
9862408000
9936218000
Madhya
Pradesh:
9893208000
Maharashtra:
9890478000
9895478000
Kochi:
9895478000
Kolkata:
9831378000
9934008000
Jharkand:
9934008000
Karnataka:
9845578000
9816608000
Hyderabad:
23128000
Indore:
4022005
9898278000
Guwahati:
9954108000
Haryana:
9896178000
9818178000
Darjeeling:
9933008000
Goa:
9890478000
4358000
Cuttack:
9938488000
Delhi:
41718000
5055700
Chattisgarh:
9893208000
Chennai:
42088000
Bhubaneshwar:
9938488000
Bihar:
9934008000
Ahmedabad:
Uttaranchal:
Patna:
Mumbai:
Lucknow:
Kerala:
Jamshedpur:
Himachal
Pradesh:
Gujarat:
Delhi (Mobile):
Coimbatore:
Chandigarh:
9894478000
9933008000
Punjab: Pune:
41131877
Tamil Nadu:
Rajasthan:
Bangalore:

9897308000 West Bengal: 6630 9890 Andhra Pradesh: 98495 78000 98292222
9933008000 UP East:
9936218000 UP West:
 9897308000 Ranchi: 9934008000
9934008000 Pune: 9890478000
Punjab: 9815558000 28307777
Orissa: 9938488000 North East:
9862408000 9936218000 Madhya
Pradesh: 9893208000
Maharashtra: 9890478000
9895478000 Kochi: 9895478000
Kolkata: 9831378000 9934008000
Jharkand: 9934008000 Karnataka:
9845578000 9816608000
Hyderabad: 23128000 Indore:
4022005 9898278000 Guwahati:
9954108000 Haryana:
9896178000 9818178000
Darjeeling: 9933008000 Goa:
9890478000 4358000 Cuttack:
9938488000 Delhi: 41718000
5055700 Chattisgarh: 9893208000
Chennai: 42088000
Bhubaneshwar: 9938488000
Bihar: 9934008000 Ahmedabad:
Uttaranchal:
Patna:
Mumbai:
Lucknow:
Kerala:
Jamshedpur:
Himachal Pradesh:
Gujarat:
Delhi (Mobile):
Coimbatore:
Chandigarh:
9894478000 Siliguri:
9933008000 41131877
Tamil Nadu:
Rajasthan:
Bangalore:

. What do I need to do to trade through the CallNTrade® facility?

In order to be able to avail the facility, you need to ensure that:

 1. You have a Trading account with ICICIdirect.com
2. Your account is in the activated status
3. You have accepted the online terms and conditions displayed on the site'

. What is the procedure for placing orders through the facility?

You can call at any of the above-mentioned Customer Care numbers. On getting connected, you need to foll

STEP I: Dial 1 for English or 2 for Hindi for opting the desired language of interaction
STEP 2: Dial 4 on the product menu for opting Online Trading
STEP 3: Dial 1 for opting the CallNTrade facility.
STEP 4: Dial the desired option for choosing the segment in which you wish to trade

For Quick access, you may dial 1,4,1 once you are connected and hear our welcome message and then cho
trade.

On completing the above process, you will be connected to our Customer Care executive. On being connecte
provide your UserId and Access code for accessing your account.

User id is unique identification code allotted to every customer holding a trading account. Access code is a nu
and maximum 8 digits long) and it is required to place orders through call n trade facility. You can generate/ c
the link "Change Access Code" on the Customer Service page of the site icicidirect.com.

In case you do not have an "Access code", our Customer Care executive will ask you a few questions to esta
verification, our executive will place orders on your behalf.

Our executive will be able to place orders on your behalf only if the combination of the User Id and the Acces
authenticated as correct by the system.

. Are there any specific timings during which I can avail of the facility ?

You may avail of the facility anytime between 9AM to 9 PM - Monday to Saturday (except trading holidays).

. Can I place orders when the markets are not open?

Yes. You may request for placing orders, during the time mentioned above, even when the markets are close
allowed to be placed during the non-trading hours. Such orders will be sent to the exchange only after the ma

. What are the charges for CallNTrade facility?

The charges are as follows:

Rs. 25 per call First 20

Calls per month - Free

-
>20 Calls

Online Password Re-Generation

. What is Online Password Re-Generation?

Online Password Re-Generation facility provides you with an option to re-generate your password online and
 www.icicidirect.com, in case you forget your password. In order to avail this facility, you would be required to
www.icicidirect.com.

. Who can avail Online Password Re-Generation facility?

All online customers can avail Online Password Re-Generation facility through www.icicidirect.com.

. Can I avail the Online Password Re-Generation facility without being registered for this facility?

No. To avail this facility you will have to register with ICICIdirect.com. The registration process is a one time a

. How can I register for Online Password Re-Generation facility?

You can login to your ICICIdirect.com account with your existing user id and password and visit Customer Se
GENERATION" link, then fill in your Email address and Mobile number and click on "Register" button. You w
of Birth and valid PAN number are available in the system. On successful registration, the Grid will be sent to

. What is a Grid? Why is a grid required?

A Grid is a system generated encrypted pdf file containing series of alphabets with corresponding numeric va
Grid will be required for your authentication and online re-generation of password.

. How can I generate a Grid? How will I receive the Grid for generation of online password?

On successful registration, the Grid will be automatically sent to you at your registered email address.

. What happens if wrong email address and or wrong mobile number is entered at the time of generatin

System will not allow you to generate the Grid if the email address and/or mobile number entered by you is in
records.

. Where can I view my registered mobile number and email address? Can the mobile number and emai

Yes. You can login into your account and visit the Customer Service Page > General Profile to view or chang
code is a must) and email address.

. When does the online change of email address and mobile number get updated at ICICIdirect?

The online change in email address and/or mobile number gets updated immediately in the ICICIdirect system

. What is the validity of the Grid received by email?

The Grid i.e. the pdf file will expire in 90 days and a new set of grid values would be sent to your registered e
generation of the earlier Grid. You are required to use the new set of grid values for online password generat

. Where can I view the validity period of the Grid?

The validity period of the Grid is mentioned on the pdf for your ready reference as the "from and to date" for w

. Can I use the Grid more than once for online password generation?

Yes. You can use the Grid more than once for online password generation by entering the required values fro
same.

. Can I generate the Grid more than once?

 Yes. You can re-generate the Grid again in case you do not have the earlier Grid available with you.. But the
once on the same day.

. How do I re-generate the Grid?

Once you are registered you can at any point of time re-generate the Grid by visiting the Customer Service P
GENERATION" link > Re-generate Grid.

. Can the grid be used after the validity period?

No. The Grid values should not be used after the validity period since the same expires for authentication. Th

. What happens if the wrong or expired Grid values are entered?

Your authentication would fail if wrong or expired Grid values are entered. In case incorrect values are entere
automatically disabled from availing the online password re-generation facility after the third attempt.

. How do I generate my password online after receipt of the Grid?

Once you have received the Grid you can generate your password online at any time by following the below

1. Visit the Login Page > select "Trouble Logging In" option
2. Fill in the below details:
o User Id or Form No.
o Bank Account No.
o Date of Birth and
o PAN
3. Select "Online Password" link
4. On selecting the above link you will be required to enter 4 values from the Grid
5. Click 'Get URN'
6. URN will be sent you on SMS
7. On receipt of URN repeat steps 1 - 3
8. Enter the below fields:
o 4 values from Grid
o URN
o New Password
o Confirm Password

. What is URN?

URN is a "Unique Reference Number" required to generate your password online. It is a 8 digit number which
you re-generate your password online.

. Why is URN required?

URN is required for authentication purpose for your online password re-generation.

. How is URN received?

URN will be sent to your registered mobile number. Kindly note that your mobile number registered with us sh

. What is the validity of the URN?

The URN is valid for 24 hours from the time of placing the request on site. To re-generate your password afte
fresh URN.
. How to re-generate URN?

You can re-generate URN by following the below steps:

1. Visit the Login Page > select "Trouble Logging In" option
2. Fill in the below details:
o User Id or Form No.
o Bank Account No.
o Date of Birth and
o PAN
3. Select "Online Password" link
4. On selecting the above link you will be required to enter 4 values from the Grid
5. Click on 'Re-generate URN' option

. What happens if incorrect or expired URN is entered at the time of online password re-generation?

The system authentication would fail if the wrong or expired URN values are entered by you. In case incorrec
times, you will be automatically disabled from availing the online password re-generation facility after the third

. How can I get enabled for the online password re-generation facility if I have been disabled?

In case you get disabled from the Online Password Re-Generation facility, you may follow below steps:

1. You can request for issue of new password through the normal process . You can either:
o Call up the Call Centre and request for new password
OR
o Visit the Customer Service Page > Unlock trading account or Issue new password.
2. The PIN mailer containing your new password will be sent to your registered address.
3. On successfully changing your password with the above PIN mailer, you would be be automatically a
Re-generation facility.

. Can I De-Register from the Online Password Re-Generation facility?

No. You can not De-register from the Online Password Re-Generation facility.

. How can I get a password if I have not registered for Online Password Re-Generation facility?

If you have not registered for Online Password Re-Generation facility and you forget your password, you will
of requesting issue of new password. You can either call up the Call Centre or visit the Customer Service Pa
new password. The PIN mailer containing your new password will be sent to your registered address.

. Can I Register or generate the Online Password through Call Centre or Call N Trade?

No. Registration for Online Password Re-Generation facility can be availed only by you through www.icicidire

IPO through ASBA

. What does ASBA stand for?

ASBA stands for "Applications Supported by Blocked Accounts".At the time of bidding ,your account is blocke
debited only at the time of allotment. This facility is being offered by ICICIDirect in affiliation with ICICI Bank L

. What is the difference between the normal IPO process as is presently being offered by ICICIDirect an

In the present IPO process, the bid amount is debited when your bid application is placed with the exchanges
 will be debited from your bank account to the extent of successful allotment at the time of allotment. Until suc
blocked in your bank account.

. Is this facility available for all IPOs ?

No. Application under this facility can be placed only for Book Built Public Issues .

. Which category of investors are eligible to bid vide the ASBA facility ?

This facility is available only for Resident Retail individuals; ie Resident individuals bidding upto Rs1,00,000/-
facility.

. Do I need to execute any additional documentation for availing this Facility?

No. You need not execute any further physical documentation to avail this facility.

. How can I bid under the ASBA facility?

For placing a bid under the ASBA route, you will have to :
Login to your icicidirect.com account =>
Click on the "Trading Page" =>
Click on the "IPO Link" => a new checkbox "ASBA" has been provided on this page. Presently, for all Retail i
option under "Bid 1" is ticked by default. You would only be required to enter the "Quantity" and accept the "T
the bid.

For bidding under the normal process you would be required to uncheck the "ASBA" option and proceed as u

. Can I bid in an IPO under ASBA as well as under NON ASBA route?

No. Only one application per IPO is permissible; multiple applications are liable to be rejected.

. Will I get priority in allotment for bidding under this facility?

No. Uniform procedure will be followed during allotment for ASBA and non-ASBA applications

. Till what time can I bid under this facility?

Bidding time will be uniform for ASBA and Non ASBA applications.

. Can I bid at multiple rates under ASBA?

No. This facility allows you to bid only at the cut off rate.

. Can I revise the bid?

No. You cannot revise your bid under the ASBA facility

. Can I withdraw my bid during the bidding period?

Yes, you can place a withdrawal request anytime during the bidding period. After successful processing of yo
be unblocked in your bank account.

. Can I withdraw the amount blocked for ASBA bid application?

No. The blocked amount cannot be withdrawn. However the same will be lying in your linked bank account til