October 07, 2025
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Scheme of Arrangement (Demerger) of TATA MOTORS LTD.

As per the NSE circular, Tata Motors Ltd. will undergo a demerger, with the record date fixed as October 14, 2025.

Pursuant to the demerger scheme, each share of Tata Motor limited will be reorganized into:

  • Tata Motors Ltd. (TML), and
  • TML Commercial Vehicles Ltd. (TMCVL)

Under this arrangement, one (1) fully paid-up equity share of ₹2/- each of TML Commercial Vehicles Ltd. (TMCVL) will be issued and allotted for everyone (1) fully paid-up equity share of ₹2/- each held in Tata Motors Ltd. (TML).

Due to the corporate action (demerger) of Tata Motors, with the record date set for October 14, 2025, the following trading restrictions will be enforced immediately:

  1. New MTF positions will not be allowed from 7th Oct. However, Users can trade in intraday and delivery products in the cash segment. 
  2. Intraday product margin will be increased to 100% in cash segment from 13th Oct. 
  3. No new positions in F&O derivatives will be allowed from 7th Oct.
  4. All the existing F&O derivative positions will be put in square off mode from 7th Oct. Users will only be allowed to exit (sell/close) these positions. 
  5. Haircut in margin pledge will be revised to 52% from 8th Oct.
  6. All open F&O position will be auto square off on 10th Oct.
  7. All MTF positions will be auto-squared off on 13th Oct.
  8. All MTF ageing and CUSPA (Client Unpaid Security Paid Account) positions will be squared off by system on 13th Oct.

Note: Any auto square-off action will be executed on a "best effort" basis. Regular trading in Tata Motors will resume from October 14, 2025.

Steps to Convert to Delivery (CTD) your MTF position:

  1. Go to Accounts > Pay Later (MTF) > Borrowings tab
  2. Locate and click on TATAMOTORSin the MTF Dashboard in the MTF pledged stocks list.
  3. Click on ‘Convert shares to delivery’ and enter the quantity (pre-filled by default).
  4. The system will calculate the required cash balance to convert to delivery and will be shown as Margin Required. Click on ‘Pay Now’ and make a payment.
  5. Shares will be converted to Delivery by the end of day.

Key Dates:

  • CTD Deadline: 10-Oct-2025
  • Square-off Date: 13-Oct-2025 (for positions not converted to delivery)

Refer: NSE Circular | BSE Circular

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