Amid growing confusion about the company’s public listing and leadership, the Tata Sons board on Thursday unanimously voted to extend N Chandrasekaran’s term as chairman. Clearing yet another organisational disagreement, the board has also made the decision to publicly list the company.
In September 2022, the Reserve Bank of India (RBI) classified Tata Sons as an Upper Layer non-banking financial company (NBFC). An Upper Layer NBFC, including core investment companies, is required to list its shares publicly within three years of being officially identified.
However, Tata Sons sought exemption as a Core Investment Company to avoid tighter regulatory scrutiny and public disclosures. This was a disagreement between the Noel Tata-led Tata Trusts, which holds over 65 per cent of Tata Sons and Shapoorji Pallonji Group, its largest private shareholder with an 18 per cent stake. Tata Trusts was reluctant to go public while the Pallonji group pushed for the group to list.
The RBI on September 11 rejected Tata Sons’ application to surrender its registration as a Core Investment Company. The central bank even filed a caveat in the Bombay High Court to ensure its stance.
Leadership uncertainty developed alongside this disagreement. Since February 2017, N Chandrasekaran has been Tata Sons Chairman. He was reappointed for a second three-year term in 2022, running until February 2027. However, while Tata Trusts backed a third term for him in 2025, Noel Tata raised concerns about Air India and Tata Digital. Chandrasekharan announced in August that he would not seek another term.
