Tata Trusts proposes new strategy to keep Tata Sons privately held

Tata Trusts, which hold a 66% stake in Tata Sons Private Limited (TSPL), have proposed a strategic reorganisation of the Tata Group holding company that would result in the entity ceasing to qualify as either a non-banking financial company (NBFC) or a core investment company (CIC).

The proposal involves merging Tata Electronics Systems Solutions Private Limited (TESS) and Tata Consulting Engineers (TCE) with TSPL. Noel Tata, in his capacity as Tata Trusts chairman on Monday wrote to Tata Sons seeking consideration and approval of the proposal. He also asked the holdco to take the necessary steps, including applying to the Reserve Bank of India (RBI) for a no-objection certificate for the merger.