Tata Trusts, holding 66% of Tata Sons, announced a plan to merge Tata Electronics Systems Solutions Pvt Ltd and Tata Consulting Engineers into the holding company to sidestep RBI’s NBFC and CIC classification.
The proposal, unveiled on Monday, would shift operating revenue of Rs 1,05,043 crore—64.3% of Tata Sons’ total income—directly into the parent, while net assets would climb to Rs 2,00,158 crore, with investments in group companies making up 1,77,120 crore.
If the merger succeeds, Tata Sons would no longer qualify as a non‑banking financial company or core investment company.
The RBI had classified Tata Sons as an upper‑layer NBFC in 2022, forcing it to comply with listing rules. After the Trusts’ 2025 appeal, the central bank rejected an exemption, leaving the holding company in a regulatory grey zone. The Trusts’ strategy is to alter the company’s asset profile so it falls outside the NBFC/CIC thresholds.
The plan requires a prior no‑objection certificate under the RBI’s 2025 Voluntary Amalgamation Directions.
Tata Sons’ board will review the proposal before seeking RBI approval. The move could preserve the group’s private status and sidestep an imminent public listing, a point that has sparked debate within the Trusts’ governance circle and raised questions about the future leadership of the holding company.