Tata Trusts proposes Tata Sons rejig to avoid RBI listing rules
Plan would merge Tata Electronics Systems and Tata Consulting Engineers with Tata Sons, giving it its own operations and revenues.
Tata Trusts on Sept 28 proposed reorganising Tata Sons so the conglomerate would no longer fall under Reserve Bank of India rules for core investment companies or non-banking financial companies, a move that would avoid a public listing. The Trusts hold 66% of Tata Sons, the holding company for Tata Group. The proposal would merge Tata Electronics Systems and Tata Consulting Engineers with Tata Sons, giving the salt-to-software group its own operations and revenues, the Trusts said in a statement.
The Indian central bank earlier this month rejected Tata Sons' application to deregister as a non-bank lender, a decision that had pushed the company towards a stock-market listing.