Shares as Margin (SAM) Investments on Your Fingertips

Transcription

1 Shares as Margin (SAM)

2 Contents: What are the needs of investors/traders? What is Shares as Margin (SAM)? What are the benefits of Shares as Margin (SAM)? Why choose Shares as Margin (SAM)? How can Shares as Margin (SAM) work for you? How to use Shares as Margin (SAM)? Points to remember about Shares as Margin (SAM)

3 What are the needs of investors/ traders? I need flexibility to bring funds. My salary or funds would come after 2 days but i see a buying opportunity today. I want to trade in F&O but don't want to allocate additional funds. My funds are in other banks it would take 2 days to transfer them but I want to buy today. I don't want to pay additional interest on limits provided by broker.

4 Introducing... Shares as Margin (SAM)

5 SAM - A Solution for your needs Launching - Shares as Margin (SAM) in Equity Segment also. Now, leverage existing demat to Invest and Trade!

6 What is Shares As Margin (SAM)? Shares As Margin is a facility which allows you to use your existing shares kept in demat account, to create limit for investing & trading in Equity besides Future and Options.

7 What are the key benefits of SAM? Limit can be used to buy stock today and bring cash by T+2 Days Limits can be used for intraday trading without bringing in margin Limits can be used to trade in Futures and Options Take leverage up to 9 times of created limit No interest is charged on Limit created to Invest or Trade Note: Pledge Creation/Closure/Invocation charges are 0.04% (minimum Rs. 30/-) In addition to above, NSDL charges for pledge creation are Rs 25 per instruction.

8 Why choose SAM? Cash Investment Create buy position in Margin client mode to buy stocks today through SAM and bring funds by T+2 Days. Trade In F&O The positional and intraday trade can be created with SAM in Futures, Future Plus and Options. Trade in Margin Benefit from intra-day movement. Limits can be used for intraday trading in Margin broker mode and positional trades in Margin Client mode. No Interest Charged No interest charge is being levied on the limits created through SAM.

9 How can SAM work for you? As an investor, I can buy stocks today and bring funds by next 2 days. I can trade in Margin without bringing additional cash for Intra-day. I can use my existing stocks to trade in F&O.

10 How to use Shares as Margin (SAM) in 3 easy steps? 1. Deposit Securities for Creating Limit 2. Allocate Limit 3. Just Invest and Trade!

11 First, go to the Shares As Margin (SAM) Tab on Equity Page Shares As Margin Tab on Equity Page

12 STEP 1: HOW TO DEPOSIT SECURITIES FOR CREATING LIMIT?

13 Step1: How to deposit securities & create limit? 1. Fill the Quantity of shares to be deposited. 2. Submit to create limit.

14 Step1: How to deposit securities & create limit? Limit is created after the Haircut and shown in total under Eligible Value.

15 STEP 2: HOW TO ALLOCATE LIMIT?

16 Step 2: How to allocate limit? After creating Limit, go to Modify Securities Limit on Shares as Margin Then, add limit to Equity or F&O segment

17 Step 2: How to allocate limit? Now you have allocated limit to Invest and Trade in both Equity and F&O

18 STEP 3: JUST TRADE & INVEST After creating and allocating limits you can now simply Invest or Trade.

19 How to check deposited shares used for creating limits? Visit deposited securities in Shares as Margin to check the shares deposited to create limits.

20 How to withdraw or Sell? Spot sell and Withdrawal can be done

21 Points to remember in SAM 1. Limits through Shares As Margin is only created post deposit of shares 2. The limits will be available as per the Hair cut which varies from stock to stock. You can view stock wise hair cut in Stock List section 3. Limits can be used to trade in Margin, Futures, Future Plus & Options. 4. Trading in Margin Plus with Shares As Margin is not allowed 5. For Mark to Market losses in F&O and fund pay in obligations in Margin segment, you need to have cash margin or your stocks will be used to settle the obligation 6. Shares As Margin limit can not be utilised for CTD (Convert to Delivery), for which you would be required to allocate funds

22 Points to remember in SAM 7. The allocated limits can be used in both Equity and Derivative segments, the maximum limit that can be utilised in both the segments taken together cannot exceed the allocated limits under Shares As Margin 8. The shares would be pledged with ICICI Securities. The unallocated Shares As Margin limit will be available under "Net withdrawal balance" which you can allocate at any time for further trading in Equity and F&O 9. The unallocated limits would not be considered towards margin requirements for Equity and F&O segment for creating new positions as well as existing open positions 10. Pledge Creation/Closure/Invocation charges are 0.04% (minimum Rs. 30/-) 11. Pledging and de-pledging again and again will attract pledge charges. Shares which are held for long term should be used in SAM to avoid pledging and de-pledging charges again and again 12. In addition to above, NSDL charges for pledge creation are Rs 25 per instruction

23 Disclaimer ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai , India, Tel No : , I-Sec is a Member of National Stock Exchange of India Ltd., SEBI Regn. No. INB (CM), SEBI Regn. No. INF (F&O), SEBI Regn No. INE (CD), Bombay Stock Exchange Ltd., SEBI Regn. No. INB (CM), SEBI Regn No. INF (F&O). Name of the Compliance officer: Ms. Mamta Jayaram Shetty, Contact number: , address: complianceofficer@icicisecurities.com. Kindly read the Risk Disclosure Documents carefully before investing in Equity Shares, Derivatives or other instruments traded on the Stock Exchanges. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. Investors should make independent judgment with regard suitability, profitability, and fitness of any product or service offered herein above. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities Limited. The contents of this presentation are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. While due care has been taken in preparing this presentation, I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any inaccurate, delayed or incomplete information nor for any actions taken in reliance thereon. This presentation is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject I-Sec and affiliates to any registration or licensing requirement within such jurisdiction.

24 Thank You