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Informist, Thursday, Sept. 17, 2026

 

--Tata Sons: N Chandrasekaran accepts board's request to remain chairman 

--Tata Sons: Board OKs extending N Chandrasekaran's chairman tenure by 5 yrs 

--Tata Sons: Board to take steps to comply with applicable RBI guidelines 

 

MUMBAI – The board of Tata Sons Pvt. Ltd. Thursday agreed by a majority vote to reappoint Natarajan Chandrasekaran as executive chairman for a third five-year term, according to an official statement. The board also said it would take steps to implement the Reserve Bank of India's directive to get Tata Sons listed.

The Noel Tata-led Tata Trusts, which collectively hold 66% in Tata Sons, are set to challenge the reappointment, according to Reuters. Just weeks ago, Chandrasekaran had said he would not seek reappointment when his current term, which began in 2022, ends in October. The Tata Sons board had deferred a decision on his reappointment in February because of lack of unanimity. The board did not reach a final decision in May and June as well for the same reason.

 

The Nomination and Remuneration Committee of the Tata Sons board met Sept. 3 to discuss Chandrasekaran's reappointment as executive chairman. "After due deliberation and in recognition of his contributions and (in) the larger interests of the Tata Group, the NRC unanimously resolved to request him to reconsider his decision and to recommend him for re-appointment at the next Board meeting," Tata Sons said in a statement Thursday.

 

IPO SOON
In another important development, the board of Tata Sons "resolved" to put to rest one of the most contentious issues around the company's status and list Tata Sons in keeping with the directive of the central bank.

 

"The Board also resolved to initiate steps to comply with the applicable RBI Guidelines and will seek guidance from RBI, Tata Trusts and other stakeholders on applicable compliance requirements," Tata Sons said in a statement.

 

Tata Sons had filed a petition with the RBI in March 2024 to surrender its "core investment company" registration in a bid to avoid getting listed. Over the weekend, the RBI rejected the petition to change the classification of Tata Sons as an "upper-layer non-banking financial company". The RBI had sat on the petition for nearly 18 months. The RBI then proceeded to file a caveat in the Bombay High Court, effectively pre-empting Tata Sons from seeking a stay on the directive to get listed.

 

According to some media reports, Noel Tata is now considering whether to seek a detailed explanation from the RBI before deciding on the next steps. Moneycontrol also reported that Tata considers the board's vote "illegal". "I voted against Chandra's appointment as chairman," the website quoted him as saying. "My veto was wrongfully overridden on the basis of a legal opinion. The decision is illegal. I recorded my dissent."  End

 

Reported by Anand JC

Edited by Rajeev Pai

 

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