Noel Tata told the Tata Sons board in Mumbai on Thursday that the conglomerate should remain private, challenging RBI’s recent push for a mandatory listing triggered by its September 11 letter.
The RBI’s notice framed Tata Sons as a non‑banking financial company, requiring it to comply with NBFC rules but stopped short of mandating a market listing. A source close to Tata said, "If Tata Sons has to comply with NBFC rules, we will do that." The comment clarifies that compliance does not equate to listing.
Tata’s board has been split over the future of its chief executive, Natarajan Chandrasekaran. Noel opposed a five‑year extension earlier this year; instead, he had offered a two‑year extension to keep Chandrasekaran’s term at 65, the statutory retirement age. With Chandrasekaran’s resignation letter already on record, the focus now shifts to choosing a successor.
Noel will also ask the RBI to explain why it rejected Tata Sons’ application to surrender its core investment company registration. He expects the Sir Ratan Tata Trust to submit a selection panel for the next chairman before the board votes on Thursday.