Description

Early expiry and reintroduction of Tata Motors F&O contracts on October 13-14, 2025 due to scheme of arrangement for demerger of Tata Commercial Vehicles Ltd.

Summary

BSE has announced adjustments to Futures and Options contracts of Tata Motors Ltd (TAMO) due to a scheme of arrangement involving demerger of Tata Commercial Vehicles Ltd. All existing F&O contracts will expire early on October 13, 2025, and new contracts will be reintroduced on October 14, 2025 (ex-date) after special pre-open session pricing.

Key Points

  • Record date: October 14, 2025 for demerger of Tata Commercial Vehicles Ltd
  • Scheme ratio: 1 equity share of Tata Commercial Vehicles Ltd (Rs. 2 face value) for every 1 equity share of Tata Motors Ltd (Rs. 2 face value)
  • Ex-date: October 14, 2025
  • All existing Tata Motors F&O contracts will expire on October 13, 2025
  • Derivatives contracts will be reintroduced from October 14, 2025
  • New strikes based on special pre-open call auction price
  • Minimum 7 ITM + 1 ATM + 7 OTM strikes available at 10:00 AM on October 14, 2025
  • Trading in F&O segment resumes at 10:00 AM after underlying scrip moves to normal market

Regulatory Changes

No regulatory framework changes. This is a standard corporate action adjustment procedure mandated by exchange rules for scheme of arrangements.

Compliance Requirements

  • Trading members must inform their clients about early expiry of all Tata Motors F&O contracts on October 13, 2025
  • Members should manage client positions and margins accordingly
  • Settlement of expired contracts will follow normal procedures
  • Contact designated Relationship Managers for clarifications

Important Dates

  • October 7, 2025: Circular issued
  • October 13, 2025: All existing Tata Motors F&O contracts expire
  • October 14, 2025: Ex-date for scheme of arrangement; new F&O contracts reintroduced after special pre-open session at 10:00 AM

Impact Assessment

Market Impact: High - Tata Motors is a major index constituent with significant derivatives trading volume. Early expiry affects all outstanding futures and options positions across all expiries. Traders holding positions beyond October 13, 2025 must close or roll over positions.

Operational Impact: Trading members need to adjust risk management systems, margin calculations, and position monitoring. Price discovery on October 14, 2025 depends on special pre-open session results.

Investor Impact: Open interest holders must decide whether to close positions before October 13, 2025 or wait for new contracts post-demerger. Price volatility expected due to corporate action and contract reintroduction.

Impact Justification

Early expiry of all existing F&O contracts and trading disruption for a major index constituent with significant derivatives turnover.