Description
All F&O contracts in TATAMOTORS with expiry post Oct 13, 2025 will expire on Oct 13, 2025 and undergo physical settlement, with obligations netted in Capital Market segment on Oct 14, 2025.
Summary
NSE Clearing Limited has announced the adjustment of all Futures & Options contracts in Tata Motors Limited (TATAMOTORS) due to a corporate action. All existing monthly contracts with expiry dates after October 13, 2025 will be forced to expire on October 13, 2025, and will undergo physical settlement. The settlement obligations from F&O segment will be netted with Capital Market obligations and settled on October 14, 2025 under settlement number 2025195.
Key Points
- All TATAMOTORS F&O contracts with expiry post Oct 13, 2025 will expire on Oct 13, 2025
- Settlement price will be based on TATAMOTORS closing price in Capital Market segment on Oct 13, 2025
- All futures and options positions will cease to exist and result in physical settlement
- Physical obligations will be netted with Capital Market obligations for trade date Oct 13, 2025
- Final MTM settlement pay-in/pay-out will occur on Oct 14, 2025 (T+1)
- Net obligations will be settled in Capital Market under Normal market type, settlement number 2025195
- Any delivery shortages will be directly closed out
- Additional reports F_CA_PS03 and F_CA_PS04 will provide position details
Regulatory Changes
This circular is issued in pursuance of:
- NCL Byelaws pertaining to Clearing and Settlement
- SEBI circular SMDRP/DC/CIR-8/01 dated June 21, 2001
- Consolidated Circular no. 043/2025 (NCL/CMPT/67750) dated April 29, 2025
- Circular no. 175/2025 (NSE/FAOP/70615) dated October 03, 2025
- Circular no. 67/2018 (NCCL/CMPT/38039) regarding physical settlement mechanism
- Circular no. 008/2023 (NCL/CMPT/55330) dated January 20, 2023
Compliance Requirements
- Members must prepare for physical settlement of all TATAMOTORS F&O positions on Oct 13, 2025
- Members should review position reports to be downloaded on Oct 13, 2025 for final settlement details
- Members must ensure adequate securities/funds for physical delivery obligations
- Members should monitor additional reports F_CA_PS03 and F_CA_PS04 for position details excluding TATAMOTORS contracts
- Members must be prepared for any delivery shortages which will be directly closed out
Important Dates
- October 13, 2025: Forced expiry date for all TATAMOTORS F&O contracts; settlement price determination; position reports available
- October 14, 2025: Final MTM settlement pay-in/pay-out (T+1); physical settlement in Capital Market segment under settlement number 2025195
Impact Assessment
Market Impact: High - Forces early expiry of all TATAMOTORS derivative contracts regardless of original expiry dates, potentially disrupting hedging and trading strategies for market participants with open positions.
Operational Impact: High - Requires physical settlement of all F&O positions, creating delivery obligations that must be fulfilled with actual shares. Members need to arrange for securities/funds to meet obligations or face close-out of shortages.
Trading Impact: All existing positions in TATAMOTORS futures and options will cease to exist after Oct 13, 2025, requiring traders to either fulfill physical delivery obligations or exit positions before the expiry date. The netting mechanism with Capital Market obligations may result in net buy or sell obligations in the cash segment.
Impact Justification
Forces early expiry and physical settlement of all TATAMOTORS F&O contracts, directly impacting all positions in this heavily traded derivative and requiring immediate action from market participants