Listing Tata Sons will lead to transparency

Last week, the Reserve Bank of India rejected Tata Sons’ application to surrender its registration as a core investment company, bringing to an end to the longstanding regulatory ambiguity on the matter.

The regulator’s decision — it comes at a time when the group has been mired in internal conflicts and only a month after Tata Sons chairman N Chandrasekaran announced his decision not to seek reappointment — implies that Tata Sons will now have to be listed on the stock exchanges. The holding company has been classified as an upper layer NBFC since September 2022.

Its board is slated to hold its next meeting on September 17, wherein the issue of listing and leadership should be on the agenda.