ICICI Securities launches eATM, an instant fund credit facility on share saleICICI Securities (ISec), India’s largest brokerage house, today announced the launch of an instant fund credit facility, eATM orders, with which retail investors can get near real-time access to money in their bank account when they sell stocks on the BSE. Currently, the money is credited on T+2 as per the existing settlement system.

Isec’s online broking division ICICIdirect account almost becomes like an ATM where clients can sell and within 30 minutes the money would be credited into the investor’s bank account. There is a limit of Rs 50,000 per client per day. This new feature is offered to all ICICIdirect customers at no additional cost and will be available to stocks sold on the BSE.

For retail investors, access to money is a very important consideration while making their investment decisions. eATM, in its own way, adds a new dimension of liquidity to stock investing.

The brokerage rate applicable for eATM trades would be the same as normal cash sell product which will be as per the customer’s mapped brokerage scheme.

Shilpa Kumar, MD & CEO, ICICI Securities, said “Now your ICICIdirect account is like your ATM. With money being credited to your account within 30 minutes of your trade, you can remain invested till the 11th hour.” The facility will benefit our over 4.5 million clients of the broking firm, Kumar said.

The feature is open to all trades in cash segment on nearly 600 stocks traded on the BSE.

AshishKumar Chauhan, MD & CEO of BSE said, “We congratulate ICICI Securities for the launch of this revolutionary product. Liquidity has significant importance to an investor’s life and eATM will bring new ease to retail Investors.”

Points to note for eATM orders

* What is an ‘eATM Order’?

‘eATM’ which stands for ‘equity-ATM’ is a facility offered by ICICIdirect wherein the customer would receive funds payout during the day on the transaction date itself for his/her cash sell transaction as payout of funds will be given at frequent intervals for sell transactions done before the payout. . The customer would not have to wait until the payout day to receive the funds thus increasing the liquidity for the customer.

Please note, intervals at which payout of funds will be given is at the discretion of I-Sec.

* What would be the brokerage applicable?

The brokerage rate applicable for eATM trades would be the same as normal cash sell product which will be as per customer’s mapped brokerage scheme. Please note that GST, STT, Transaction charges and Stamp Duty will be payable at applicable rates in addition to the brokerage.

* Will you always receive funds payout during the day for your eATM sale transaction?

I-Sec is providing eATM facility on as and when basis and has the full discretion to modify, delay or stop payout of funds.

* What is ‘eATM Withheld amount’ in eATM transaction and will this amount be released?

A certain amount of Trade Value is retained against your eATM sell transactions and kept as eATM withheld amount. This amount is retained towards the recovery of brokerage and other statutory levies. The amount retained will be released in Limits after adjustment of recoveries, once the brokerage process is carried out for that trade date and this amount can be utilised by you. The payout of this amount will be credited in your account, once the same is processed as per existing normal equity payout process which normally happens on T+2 basis.

* What is the difference between ‘eATM Sell’ and ‘Spot Sell’?

In Spot sell transaction you would receive payout of funds at end of day after deduction of the brokerage and statutory levies. However, in eATM you would receive funds during the day on the transactions date itself for your sale transaction as payout will be given at frequent intervals after deduction of the withheld amount.

* Is there any maximum limit for the amount of eATM trades you can enter into on a daily basis?

The maximum limit of eATM trades that you can enter into on a daily basis would be restricted to Rs. 50,000 per customer. ICICIdirect can, however, change this limit at its discretion. Please note, if this limit is breached, then you will not be able to transact in eATM product.

Author
Rahul Sharma

Rahul Sharma is a contributing writer with RupeeIQ. He can be contacted on contact@rupeeiq.com