Description

NSE announces adjustments to F&O contracts of Tata Motors Limited due to demerger scheme of arrangement, with ex-date on October 14, 2025 and early expiry of existing contracts on October 13, 2025.

Summary

NSE has announced adjustments to Futures and Options contracts of Tata Motors Limited (TATAMOTORS) pursuant to a Scheme of Arrangement (Demerger). The ex-date and effective date is Tuesday, October 14, 2025. All existing F&O contracts expiring in October, November, and December 2025 will expire early on Monday, October 13, 2025. New derivatives contracts will be introduced from the ex-date based on adjusted parameters.

Key Points

  • Corporate action type: Scheme of Arrangement (Demerger)
  • Ex-date and effective date: Tuesday, October 14, 2025
  • All existing contracts with expiry dates October 28, 2025, November 25, 2025 and December 30, 2025 will expire early on Monday, October 13, 2025
  • Range of option strikes for trading will be provided one day prior to the ex-date/effective date
  • Strikes will be based on price discovered in Special Pre-Open Session (SPOS) of the Capital Market segment on the ex-date
  • Derivatives contracts on TATAMOTORS will be introduced again from the ex-date of the underlying
  • Adjustment details available at: https://www.nseindia.com/products-services/equity-derivatives-corporate-actions-adjustments

Regulatory Changes

This circular implements SEBI guidelines for adjustments to futures and options contracts on announcement of corporate actions, specifically for scheme of arrangement (demerger) scenarios.

Compliance Requirements

  • All members must note the early expiry of existing F&O contracts on October 13, 2025
  • Members should prepare for adjusted contracts to be introduced from October 14, 2025
  • Settlement methodology will be separately intimated by respective Clearing Corporations
  • Members must monitor the announcement of option strike ranges one day prior to ex-date

Important Dates

  • October 3, 2025: Circular issue date
  • October 13, 2025 (Monday): Early expiry date for all existing TATAMOTORS F&O contracts (originally expiring October 28, November 25, and December 30, 2025)
  • October 14, 2025 (Tuesday): Ex-date and effective date; new adjusted derivatives contracts to be introduced
  • One day prior to October 14, 2025: Announcement of option strike ranges based on SPOS price discovery

Impact Assessment

High Impact on Derivatives Market:

  • All traders holding TATAMOTORS F&O positions must close or roll over positions by October 13, 2025
  • Early expiry affects three contract series (October, November, December 2025)
  • Trading disruption as existing contracts expire early and new adjusted contracts are introduced
  • Position adjustments required for all open interest in TATAMOTORS derivatives
  • Potential price volatility during SPOS session on ex-date as it determines new strike ranges
  • Settlement procedures to be announced separately by Clearing Corporations may impact margin and settlement obligations

Impact Justification

Major corporate action requiring early expiry of all existing F&O contracts and introduction of adjusted contracts post-demerger, affecting all traders holding TATAMOTORS derivatives positions.