Hi Traders 
Tata Motors Limited has announced a Scheme of Arrangement between Tata Motors Limited and TML Commercial Vehicles Limited.
Record Date: Tuesday, 14 Oct 2025
As per the scheme, 1 (one) fully paid-up equity share of TML Commercial Vehicles Limited will be issued for every 1 (one) fully paid-up equity share of Tata Motors Limited held as on the record date.
Example: If you hold 100 shares of Tata Motors, you will receive 100 shares of TML Commercial Vehicles Limited.
TML Commercial Vehicles Limited is a new company formed through this demerger and is currently unlisted. Once the shares are credited to your Demat account, they will appear under the Unlisted section of your portfolio. Trading will begin once the company lists on the exchanges.
Impact on Derivatives (F&O)
| Detail | Action / Impact | Effective Date |
|---|---|---|
| Margin & Collateral | Collateral margin haircut of 50% will apply on Tata Motors positions. | Friday, 10 Oct 2025 |
| Early Expiry | All open Tata Motors F&O contracts (28 Oct, 25 Nov & 30 Dec 2025) will expire early and be physically settled. | Monday, 13 Oct 2025 |
| New Position Restriction | NRML/ MIS order type will be blocked. Only Futures in MIS will be allowed for trading. | Monday, 13 Oct 2025 |
| Square-off Policy | Positions with insufficient margin or holdings may be squared off after 10 AM as per Dhan’s RMS policy. | Monday, 13 Oct 2025 |
| Fresh Contracts | New Tata Motors F&O contracts (Oct, Nov & Dec expiries) will be introduced again post-demerger. | Tuesday, 14 Oct 2025 |
Impact on MTF (Margin Trading Facility)
| Detail | Action / Impact | Effective Date |
|---|---|---|
| Trading Haircut | 100% haircut on Tata Motors MTF positions. | Wednesday, 08 Oct 2025 |
| Trading Restriction | MTF trading not allowed in Tata Motors. | Friday, 10 Oct 2025 & Monday, 13 Oct 2025 |
| Position Handling | All MTF positions will be closed or squared-off. | Monday, 13 Oct 2025 |
| Resume Normal Trading | Trading in Tata Motors MTF will resume as usual. | Tuesday, 14 Oct 2025 |
Special Pre-Open Session (SPOS)
A Special Pre-Open Call Auction will be conducted for Tata Motors on Tuesday, 14 Oct 2025 (9 AM – 10 AM) to determine the post-demerger opening price.
Based on the discovered price, new option strikes will be introduced - five in-the-money, one at-the-money, and five out-of-the-money.
The Clearing Corporation will announce the final settlement and price-adjustment methodology separately.
Note (for MTF holders): Maintain sufficient margin and funds to avoid forced closure before the cut-off date.
Refer to the official NSE circular here for complete details.
Regards,
Team Dhan