Tata Trusts on Thursday said it had not agreed to a stock market listing of Tata Sons and asked the holding company to examine other options. Chairman Noel Tata has warned that going public would undermine the group’s character and charitable ownership model.
The statement added another point of disagreement within the group on a day when the Tata Sons board approved a five-year extension for N Chandrasekaran as executive chairman despite Noel’s opposition. The Trusts separately described that reappointment resolution as “illegal”.
“The Tata Trusts have not agreed to listing of Tata Sons,” the statement said. It said the board discussed a communication received from the RBI on September 11 and agreed to examine alternatives before deciding its next step.
Board to assess all options
“The Board agreed that all available options, and not listing alone, should be thoroughly explored and assessed on an immediate basis, with the findings and recommendations presented to the Board,” the Trusts said.
A separate board meeting will be convened after that review to consider the assessment and determine the appropriate course of action, according to the statement.
The clarification follows earlier reports that the board had decided to proceed towards listing. Tata Sons’ own statement said it would initiate steps to comply with applicable RBI guidelines and seek guidance from the regulator, Tata Trusts and other stakeholders on compliance requirements.
The regulatory pressure intensified after the RBI rejected Tata Sons’ application to surrender its registration as a core investment company, Financial Express reported. Tata Sons has been classified as an upper-layer non-banking financial company since September 2022. RBI rules require companies in that category to list within three years.
Noel Tata invokes the Tata model
The Trusts said opposition to listing was consistent with earlier decisions. In March 2024, the Tata Sons board unanimously resolved that the company should remain unlisted under the guidance of the late Ratan Tata, the statement said.
The Sir Dorabji Tata Trust and Sir Ratan Tata Trust passed similar unanimous resolutions in July 2025 and communicated them to Tata Sons.
Noel Tata argued that the group’s ownership structure had enabled it to pursue national and public interests beyond commercial considerations. Its majority shareholder is a charity that uses dividends to fund hospitals, universities and research, the statement said.
“That is not sentiment. It is the operating model of this House, and it has stood the test of time for more than a century. A listing will destroy its character and strike at the heart of this principle,” he said.
Tata Trusts owns about 66% of Tata Sons. The Shapoorji Pallonji Group, which holds around 18.4%, has favoured a listing to unlock value and improve liquidity.
The Trusts said they supported a lawful examination of all permissible options while protecting the long-term public interest, and would continue engaging with Tata Sons and the relevant authorities. Their position leaves the response to the RBI’s communication subject to assessment and another board meeting, according to the statement.