Amid Tata group power struggle, Shapoor Mistry backs RBI’s call on Tata Sons listing; full text of statement

Amid the Tata Sons listing buzz and power struggle in the Tata group, the Shapoorji Pallonji Group Chairman Shapoor Mistry has welcomed the Reserve Bank of India’s decision to require Tata Sons to comply with regulations applicable to upper-layer non-bank financial companies. He has described the move as a potential turning point for greater transparency and accountability at the Tata group’s holding company.Mistry’s family-owned Shapoorji Pallonji Group holds about 18.4% in Tata Sons. He said the RBI decision had brought “full clarity” and expressed his intention to work constructively with Tata Sons and the Tata Trusts on the holding company’s future.On September 11, the RBI rejected Tata Sons’ request to surrender its registration as a core investment company and directed the company to take the necessary steps to comply with the relevant regulatory framework.The decision sets Tata Sons on a path toward a public listing after years of efforts by the company to remain privately held.“This landmark decision should not be viewed as a victory of one stakeholder over another,” Mistry said in a statement.Also Read | Who owns Tata, who runs it? The power struggle between Tata Sons and Tata Trusts explainedHe said, “The listing of Tata Sons can become a bridge” between shareholders and the Tata Trusts, as well as between private ownership and public accountability.Mistry also said greater public accountability should not undermine Tata’s philanthropic purpose. In his view, a listed Tata Sons could offer greater visibility into the value of the holding company, reinforce governance and establish a more durable flow of value to the charitable activities of the Tata Trusts.Tata Sons Listing: What Shapoorji Pallonji Mistry saidBelow is the full text of the statement issued by Shapoorji Pallonji Mistry, Chairman, Shapoorji Pallonji Group on the Reserve Bank of India’s decision regarding Tata Sons:I receive the Reserve Bank of India’s decision with deep respect and profound humility. I welcome the decision wholeheartedly, and I believe it marks a pivotal moment not merely for Tata Sons, but for the principles of transparency, accountability, fairness and responsible institution-building that should guide enterprises of national importance. The Reserve Bank of India has provided full clarity. Tata Sons had been classified as an Upper-Layer NBFC under the RBI’s Scale-Based Regulatory Framework, and the prescribed listing route followed from that regulatory architecture. With the RBI having rejected the application to surrender its registration and directing Tata Sons towards the necessary compliance at the earliest, the path forward is clear. I want to acknowledge the RBI and the Government for the clarity of purpose brought to this process and the discipline shown in holding all institutions, regardless of size or standing to the same standard. I wish to place on record my profound admiration for the exemplary leadership of our Hon’ble Prime Minister, Shri Narendra Modiji, particularly his commitment to strengthening institutions and enabling them to discharge their responsibilities with clarity, authority and purpose. The establishment and development of institutions such as NITI Aayog, the emphasis on transparent and accountable governance, and the Government’s stated respect for the Reserve Bank of India’s autonomy, reflect the conviction that a strong India rests on strong institutions. I regard the empowerment of institutions to act in accordance with the law and public interest as a defining mark of statesmanship and hold the Prime Minister’s commitment to institution-building and the long-term national interest in the highest regard.I have repeatedly said that the public listing of Tata Sons is not merely a financial or regulatory matter. It is a social and moral imperative. It is about strengthening transparency and public accountability in one of India’s most consequential business institutions, while preserving and advancing the extraordinary philanthropic purpose that lies at the heart of the Tata legacy. This landmark decision should not be viewed as a victory of one stakeholder over another. It should be viewed as an opportunity to bring people and institutions together. The listing of Tata Sons can become a bridge. A bridge between shareholders and Trusts, between private heritage and public accountability, between generations of stewardship, and between India’s great past and the extraordinary future that lies ahead.The relationship between the Shapoorji Pallonji and Tata group is itself more than a century old. It has been built over generations through enterprise, trust, shared experiences, and a deep understanding of the responsibilities that come with building institutions in India. I therefore look forward not merely to a resolution of the present chapter, but to forging a greater partnership, greater engagement and deeper relationships with Tata Sons and the Tata Trusts in the years ahead. Always with a spirit of mutual respect and always keeping the national interest paramount. The founding philosophy of Jamsetji Tata provides the moral foundation for this moment. Jamsetji famously said: “In a free enterprise, the community is not just another stakeholder in business but is in fact the very purpose of its existence.” He also believed that what advances a nation is the creation of institutions and opportunities that enable people to serve the country. His life demonstrated that enterprise and nation-building need not be separate pursuits; enterprise can itself be an instrument of national progress. That very philosophy should guide the next chapter of Tata Sons. The question before us should not simply be who owns what, or how a corporate structure is preserved. The larger question should be how can one of India’s greatest industrial institutions become even stronger, more transparent, more accountable and more capable of serving the nation.I believe a transparent and publicly accountable Tata Sons can strengthen the entire ecosystem. It can broaden participation, enhance governance, give greater visibility to value, protect the legitimate interests of investors and provide the basis for a more robust and equitable dividend policy. Most importantly, it can strengthen the capacity of the Tata Trusts to pursue their philanthropic responsibilities over generations. The Tata Trusts are among India’s most important philanthropic institutions. It should be our shared ambition that, over the coming five years, the Trusts become one of the largest and most consequential philanthropic corpuses in the world — not merely in the size of their corpus, but in the scale, quality and permanence of the public good they create. A stronger Tata Sons, operating transparently and responsibly, can help make that ambition possible through sustained enterprise growth and a durable flow of value towards philanthropy.The millions of Indians who have invested in listed Tata companies are also part of this larger story. They have placed their faith and their savings in the Tata name. A publicly accountable holding company can strengthen the relationship between that enormous community of investors and the institution whose success underpins the wider Tata ecosystem. Transparency, in my view, is the truest form of respect for both legacy and the future. Tata Sons now stands at the threshold of another extraordinary era. India is moving decisively into semiconductors, advanced manufacturing, aviation, defence, artificial intelligence, digital technologies, energy and strategic infrastructure. These are not simply new businesses; they are capabilities that will shape India’s economic sovereignty and competitiveness in the decades ahead. I would like to see Tata Sons evolve into a modern, globally respected and publicly responsible holding institution. One that creates value for shareholders, respects every stakeholder, remains deeply committed to philanthropy and places national interest at the heart of its long-term decisions. A holding company of this stature should be capable of combining capital, innovation and enterprise with the conscience and trusteeship that have distinguished the Tata name.I therefore appeal to every section of the Tata group – individual trustees, Tata Sons, its leadership, its shareholders, employees and all other stakeholders to come forward in a spirit of harmony and shared purpose. Let us not allow the listing to become even a minor point of division. Let us use it as a bridge. Let us make it an opportunity for reconciliation, renewal and a stronger institutional future. From my side, I want to make my views unequivocally clear. I look forward to working closely and constructively with Tata Sons on this pathway. And to forging a deeper, more harmonious, and supportive relationship with the Tata institution. The Shapoorji Pallonji Group stands ready to engage in that spirit with respect for Tata’s heritage, confidence in its future and a shared commitment to the national interest. The relationship between our two institutions has survived generations because it is rooted in something larger than individual interests. I believe the next generation should inherit not a legacy of division, but a legacy of cooperation, mutual respect and joint nation building. There is a great deal that the Shapoorji Pallonji and Tata institutions do and can continue to do together for India.The RBI’s decision can therefore become far more than the conclusion of a regulatory question. It can become a landmark in the evolution of Indian corporate governance – an affirmation that scale and heritage can coexist with transparency; that philanthropy can coexist with public accountability; and that great private institutions can evolve in step with the aspirations of a great nation. I offer my deepest respect to the Reserve Bank of India and to the Government of India for upholding the regulatory framework and providing institutional clarity. I hope every stakeholder will now come forward with maturity, goodwill and a willingness to build the future together.For me, the principle has always been simple. Our nation comes first. That is the spirit with which I have approached the question of Tata Sons’ listing, and that is the spirit in which I will approach the future. The objective is not victory for one side. The objective is a stronger Tata institution, stronger philanthropy, greater accountability, deeper partnership and, ultimately, greater service to India. Get the latest Business News and Live updates. Download the TOI app.