Noel Tata Advocates for Tata Sons to Remain Unlisted and Foster Engagement with RBI
NEW DELHI: Tata Trusts chairman Noel N Tata has urged Tata Sons to remain unlisted and engage with the Reserve Bank of India (RBI) regarding its status. He emphasized the need for the holding company to reconsider its options to avoid a public listing, suggesting that restructuring could be a viable alternative. Tata stated that the RBI’s recent communication did not explicitly mention listing and that various avenues should be explored.
Tata reiterated that the positions of the board and the trusts on maintaining privacy have not changed. He requested that N Chandrasekaran, chairman of Tata Sons, keep the trusts informed about developments. In previous discussions, Chandrasekaran assured directors that steps were being taken to preserve Tata Sons’ unlisted status. Tata expressed concern over the lack of updates on the management’s engagement with the regulator and called for a comprehensive briefing for the board.
Noel N Tata highlighted that the RBI’s communication came unexpectedly and suggested seeking clarity on the reasons behind the regulator’s decision, potentially through a Right to Information (RTI) request. Some directors have shown support for listing Tata Sons, but Tata argued that the company is not a typical holding entity. He pointed out that Tata Trusts, which owns approximately 66% of Tata Sons, reinvests dividends into charitable initiatives. He warned that a public listing could undermine the rights of the trusts and shift accountability towards institutional shareholders focused on financial returns.
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