Tata Motors — Adjustment of F&O Contracts (Demerger)

: Notice Board; 07 October 2025; Hits: 205

Tata Motors — Adjustment of F&O Contracts (Demerger)

Time-sensitive

Please read carefully if you hold or plan to trade Tata Motors Futures & Options.

What’s changing & why?

Tata Motors is undergoing a demerger. To align derivatives with the new capital structure, the exchange is expiring existing contracts early and re-introducing fresh contracts from the ex-date.

Reason Demerger adjustment as per exchange circulars

Key dates (at a glance)

Mon, 13 Oct 2025 — Early Expiry
All existing Tata Motors F&O contracts with original expiries Oct 28, Nov 25, Dec 30, 2025 will expire on Oct 13.
Settlement method/price per clearing corp’s communication.
Tue, 14 Oct 2025 — Ex-Date & New Contracts
Fresh F&O contracts will be listed from market open (post SPOS pre-open price discovery). Strike ranges will be as published by the exchange.
Tue, 14 Oct 2025 — Record Date (Equity)
Shareholder eligibility for demerger entitlement as per company notice.

If you currently hold positions

Scenario

What it means

Suggested action*

Long/Short Futures (any of Oct/Nov/Dec ’25 series)

Your position will expire on Mon, 13 Oct (not on the original expiry).

Review P&L and margin. Decide to square-off before 13 Oct or let it settle as per clearing rules.

Long Options

Options will also expire on 13 Oct. Time value decays faster near early expiry.

Consider exit/roll decisions before 13 Oct based on view and liquidity.

Short Options

Obligation ends on 13 Oct. Assignment/settlement risk concentrated on that day.

Monitor margins & risk; adjust or close before 13 Oct if needed.

Fresh trades before 14 Oct

Not advisable due to early expiry & pricing distortions.

Avoid initiating new positions until new series list on 14 Oct.

*This is informational and does not constitute investment advice.

Simple takeaway for F&O traders:
Be cautious holding Tata Motors F&O through Mon, 13 Oct.
Safer approach Consider fresh entries only after Tue, 14 Oct once the new contracts are live.

FAQ (Layman’s terms)

Why did my Tata Motors contract expire early?
Because the company is being split (demerger). Exchanges align derivatives to the “new” company structure.

Will I automatically get new positions?
No. Old series end on Oct 13. You must place fresh trades from Oct 14 if you want exposure.

What price will new strikes be based on?
On Oct 14, the exchange discovers an opening price in the pre-open (SPOS) session and publishes the strike range accordingly.

I own Tata Motors shares. Do I need to do anything?
If you’re a shareholder on the record date (Oct 14), entitlement will be processed automatically in your demat. Trading visibility depends on listing/ISIN timelines announced later.

Sources: Exchange circulars on F&O adjustment for Tata Motors and company record-date notices. Dates & mechanics are per exchange/clearing corp & issuer communications.

Tags: Notice Board - Important Announcement

Notice Board