The Reserve Bank of India (RBI) may issue a fresh communication on Tata Sons’ listing requirement amid discussions within Tata Trusts over restructuring the company’s assets or shareholding to retain its privately held status, according to a source cited by Business Standard. The development follows the Tata Sons board meeting on September 17, where directors backed a proposal to pursue the listing mandated by the RBI after the regulator rejected the company’s application to deregister as a core investment company (CIC). The board also approved the proposed reappointment of N Chandrasekaran as Tata Sons chairman for another five-year term from February 2027, although the decision is facing a legal dispute over provisions in the company’s Articles of Association. Tata Trusts chairman and nominee director Noel Tata did not support the two resolutions and has urged the company to engage further with the RBI, arguing that the regulator’s September 11 communication rejecting the CIC deregistration application did not explicitly state that listing was the only option. Tata Trusts, which holds about 66 per cent of Tata Sons, is opposed to the listing and has sought more time to explore alternatives, while the Shapoorji Pallonji Group, which holds more than 18 per cent, supports the proposed listing. Tata Sons was classified as an upper-layer non-banking financial company by the RBI in 2022, with such entities required to list within three years. The company had subsequently cleared its debt and sought deregistration as a CIC to remain private. The RBI has not responded to queries on whether it plans to issue a fresh communication.
RBI Could Clarify Tata Sons Listing Requirement Soon
