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News Topical, Digital Desk : Tata Motors has made a major change to its business structure, splitting the company into two parts – Tata Motors Passenger Vehicles Ltd (TMPV) and Tata Motors Commercial Vehicles Ltd (TMLCV). Following this demerger, which took effect on October 1, investors received new shares in a 1:1 ratio. However, many investors are unable to view Tata Motors Commercial Vehicles shares on their trading apps. Let's explore the reasons behind this and when trading will resume.
The country's leading auto company, Tata Motors Ltd., has split its business into two independent companies.
One company will now handle the passenger vehicles business, while the other will focus solely on the commercial vehicles segment. This demerger scheme officially came into effect on October 1st. Under this scheme, Tata Motors has formed two new entities: Tata Motors Passenger Vehicles Ltd (TMPV) and Tata Motors Commercial Vehicles Ltd (TMLCV). In this process, investors who held Tata Motors shares as of October 14th (the record date) have been given TMLCV shares in a 1:1 ratio. That is, if an investor held 100 shares of Tata Motors, they will also receive 100 shares of TMLCV. Why are the shares not visible on the trading app? Actually, TMLCV shares have not yet been listed. The company has stated that these shares will remain frozen in their demat accounts until listing approval is received from the BSE and NSE. According to the company, the process of obtaining listing and trading approval typically takes 45 to 60 days. During this time, shares cannot be bought or sold, and therefore, they will not be visible in your app. In an email to shareholders, TMLCV stated, "The company is currently in the process of listing its equity shares on the BSE and NSE. Until listing approval is received, the shares credited to your account will remain frozen. Once approval is received from the BSE and NSE, these shares will be visible in the apps and trading will commence. The company will formally notify shareholders of this. What shareholders should do: If TMLCV shares are not visible in your app, you can first check with your Depository Participant (DP), the company through which you opened your demat account. Additionally, you can check the status of your shares in your demat account through CDSL's EASI service (Electronic Access to Securities Information)." How to register for Easi : Visit the website: https://web.cdslindia.com/myeasitoken/Home/Login Click on CDSL. Click on "To Register for Easi! Click Here. " Enter your 16-digit demat number. Create a password and select "I am not a robot." Click on Register to complete the process. Upon completion of registration, you will receive a confirmation message from CDSL. You will then be able to view the details of all your shares online. When will trading begin? According to the company, trading in TMLCV shares is expected to begin by the end of November. Tata Motors announced on October 15 that it had allotted 36,823,31,373 fully paid-up equity shares to its shareholders, with a face value of ₹2 per share. Additionally, the company stated that the existing 500,000 shares (which were held by Tata Motors) have been cancelled, and this new company is now completely independent.
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