EXPLAINED: Why Tata Sons remains unlisted and what the RBI Diktat means

All you need to know about RBI's latest rejection of Tata Sons’ plea to remain unlisted, and the big question: Will Tata Sons list on the stock market?

New Delhi: Tata Sons is the holding company at the heart of the Tata Group. About 66% of Tata Sons is owned by Tata Trusts. While the perception is that Tata Trusts is the philanthropic body associated with the Tata Group, company insiders have known Tata Sons to be the operating arm of Tata Trusts. That distinction is important to understand who controls whom. Noel Tata became the Chairman of Tata Trusts in 2024 after Tata Group patriarch and half-brother Rata Tata’s death.

Tata Sons holds large stakes in several of India’s best-known companies that make the Tata Group. Most if these companies are publicly listed on stock exchanges in India in the primary market and a few in the secondary market abroad via the Global Depositories Receipts or GDRs. But Tata Sons itself has been privately held.

Tata Sons Chaiman N Chandrasekaran who took over the reins of the Board from Ratan Tata in 2017, decided last month to opt out of being considered for a third term as Chairman. Moreover, internal rift and power struggle at Tata Group have also come to light with a faction of trustees at odds with Noel Tata. The group is already reeling under financial pressure of its loss-making Air India that it acquired from the government in January 2022 for ₹18,000 crore ($2.4........

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