Tata Trusts Proposes Tata Sons Rejig to Prevent Listing Driven by Central Bank
The Trusts hold 66% of shares of Tata Sons the holding company for Tata Group. The plan entails a proposal to merge group companies — Tata Electronics Systems and Tata Consulting Engineers — with Tata Sons.
- Republic Business
- 1 min read
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Tata Trusts on Monday proposed to reorganise Tata Sons to ensure the conglomerate no longer comes under Reserve Bank of India rules for core investment companies or non-banking financial companies, thereby preventing a public listing.
The Trusts hold 66% of shares of Tata Sons the holding company for Tata Group.
The plan entails a proposal to merge group companies — Tata Electronics Systems and Tata Consulting Engineers — with Tata Sons.
Such a move would mean the salt-to-software conglomerate would have its own operations and revenues, the Trusts said in a statement.
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The Indian central bank earlier this month rejected an application from Tata Sons to deregister as a non-bank lender, a decision that pushed the company towards a stock-market listing.