Noel Tata, Chandra talk further

The recent talks, which are being seen as a courtesy call, were aimed at setting the agenda for Tuesday’s board meeting, which will pick up from where the previous Tata Sons board meeting on February 24 had ended inconclusively.

There was no official confirmation from Tata Trusts or Tata Sons on the meeting between Noel Tata and N Chandrasekaran.

The chairman of Tata Trusts (which holds about 66 per cent stake in Tata Sons) had raised questions in the February meeting on the financial position of group companies like Air India, Tata Digital and Tata Electronics. Noel Tata, who is one of the two nominee directors on the Tata Sons board, has reportedly linked the profitability of several Tata entities to Chandrasekaran getting a third term.

Ensuring that Tata Sons, the holding company of the salt-to-software conglomerate, remains unlisted was another issue raised by Noel Tata in that meeting.

The May 26 meeting is important as it is expected to lay out the framework for the future leadership of the Tata Group at a time when the group’s focus is on capital-intensive high-tech businesses including artificial intelligence, defence, electronics, manufacturing and semiconductors.

The renewal of Chandra’s tenure is likely to be considered in the upcoming meeting, along with discussions on the businesses of some Tata entities that are yet to make profits. Chandra, 62, has a second five-year term as executive chairman of Tata Sons till February 2027.

Tata Trusts had passed a resolution supporting Chandra’s third five-year term as executive chairman of Tata Sons in July 2025.

It is understood that the listing of Tata Sons will also be discussed in the agenda of the board meeting on May 26. Tata Trusts’ July 2025 resolution had also supported the proposal to delist Tata Sons. More recently, Tata Trust’s two vice-chairmen—Venu Srinivasan and Vijay Singh—in media interviews supported the listing of Tata Sons, citing the need to invest in the group’s capital intensive future businesses.

Meanwhile, the Reserve Bank of India (RBI) is expected to announce its decision on the listing of Tata Sons soon. The RBI classified Tata Sons as an upper-tier NBFC (non-banking finance company) in September 2022, mandating it to become a public listed entity within three years. Tata Sons seeks exemption from listing in 2024 to become a debt-free company. Thereafter, the RBI has not given any direction to Tata Sons on listing, but recently indicated that it may not be able to deregister as an upper tier NBFC as it has indirect access to public funds through its group companies.

Corporate governance research and advisory firm InGovern Research, in its latest report, has reiterated the need for listing of companies like Tata Sons. ”Tata Sons should be required to move towards a listed structure in a timely and regulatory-compliant manner. It is the only CIC (Core Investment Company) which does not comply with RBI regulations,” it said.