Tata Sons must stay unlisted, should engage with RBI: Noel Tata

NEW DELHI: Tata Trusts chairman Noel N Tata on Thursday called for Tata Sons to stay unlisted and suggested that the holding company of the salts-to-software conglomerate must engage with RBI and demanded that the decision should be reconsidered."...the company must explore all permissible avenues and options to avoid public listing... the letter from the regulator does not even name listing. There are other options and avenues available. The company can consider restructuring, for example. As stated above, the regulations themselves contemplate other options. All such avenues and options must be explored," he told the Tata Sons board.While maintaining that the position of board members and the trusts on staying private remained unchanged, Noel said the holding company's chairman N Chandrasekaran had been requested to keep the trusts, the majority shareholders, informed. In Sept 2025, he said, Chandra had assured the directors that all necessary steps had been taken to maintain Tata Sons' unlisted status, which was reiterated on Feb 24."I do not read the assurance given... as having expired. What were the options explored by the management to avoid public listing? What was the level of engagement with the regulator on this front? The board has not been briefed on this. I call upon the chairman and the relevant officials to fully brief the board on the journey of this engagement at a subsequent meeting. Whatever this company now proposes to do in response to the (RBI) communication of Sept 11, 2026, it should proceed upon a position at which Tata Sons and the Tata Trusts have arrived together," he said, while insisting that Tata Trusts must be engaged at every step.Stating that the RBI communication "reached this board without a warning", he also said that the details of what led to RBI's decision should be sought, including through RTI.The comment came as some of the directors have indicated their support for Tata Sons to be listed.Asserting that the Tata Group had always complied with regulations, he said in case Tata Sons had to be listed, it should seek at least three years to comply with the requirement.Arguing against listing, Noel said Tata Sons is not a holding company in the ordinary sense as Tata Trusts, which holds around 66% stake, ploughed back the dividends received from operating companies into charity. "If Tata Sons is publicly listed, the rights of Tata Trusts as majority shareholder stand to be seriously impaired. A listed Tata Sons would be accountable to institutional and foreign shareholders whose legitimate interest is financial return," he said.Noel said RBI norms on upper layer NBFCs allow them to move out of the enhanced regulatory framework if it is due to "voluntary strategic move to readjust operations" and if it is approved by the board.Get the latest Business News and Live updates. Download the TOI app.