Scheme of Arrangement in Tata Motors Limited (TATAMOTORS)

Tata Motors Limited is undergoing a Scheme of Arrangement (Demerger) effective October 14, 2025. Under this scheme, the company will split into two separate listed entities, one for its commercial vehicles (CV) business and another for its passenger vehicles (PV) business, which will include EVs and Jaguar Land Rover (JLR).

As part of the arrangement, shareholders of Tata Motors will receive 1 share of Tata Motors Commercial Vehicles Ltd (TMLCV) for every 1 share held in Tata Motors Limited as of the record date, October 14, 2025.

Here’s the circular for the scheme of arrangement covering the special pre-open session and F&O contract adjustment of Tata Motors Limited.

Corporate action effective date: October 14, 2025 (Tuesday)


F&O contract impact

All existing futures and options contracts with expiry dates October 28, 2025, November 25, 2025, and December 30, 2025, will expire on October 13, 2025 (Monday), ahead of the corporate action.

These contracts will be settled through physical settlement, and applicable delivery margins will apply as per the physical settlement policy.

New F&O contracts on Tata Motors will be reintroduced from October 14, 2025 (ex-date) with the same expiries.

Note: The expiry date shown on Marketwatch will reflect the original expiry, but these contracts will only be available for trading until October 13, 2025.

Special pre-open call auction

A Special Pre-open Session (SPOS) will be conducted for Tata Motors on October 14, 2025, between 9:00 AM and 10:00 AM on NSE and BSE to determine the price post-demerger.

This discovered price will be used for adjusting the F&O strike prices and contract values.

MTF position handling

MTF positions will be squared off on October 13, 2025, ahead of the corporate action. To retain your TATAMOTORS holdings under MTF, please convert them to CNC (delivery) by 4:00 PM on October 10, 2025.

More on MTF here.

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I have 40000 qty of tatamotors in futures @ 695. What should I do Monday?? Stock split is applicable for futures contract also??

If I need to square off my positions on Oct 13th, then on next day if the TMPV & TMCV opens on a higher side, then it will be a loss for me right??