October 08, 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 60% in cash segment on 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. Existing MTF positions in Tata Motors will be continued with the revised margin of 60% effective from 8th Oct 2025.
  8. All MTF shortage 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.

Refer: NSE Circular | BSE Circular

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