Business

Tata to discuss IPO rule, Chandra’s reappointment

By Sohail Khan 17 September 2026, 1:11 am

Benchmarks
Nifty23,217.6099.0

FEATURED FUNDS★★★★★

Motilal Oswal Midcap Fund Direct-Growth

5Y Return
22 %

Invest Now

Enter search text:

Business News›News›Company›Corporate Trends›Tata Sons to discuss RBI's listing rule, Chandrasekaran's reappointment at Board meeting

Read Today's Paper

Tata Sons to discuss RBI's listing rule, Chandrasekaran's reappointment at Board meeting
Synopsis

Tata Sons board meets Thursday with legal opinions on RBI listing directive and chairman's reappointment. The nomination committee seeks N Chandrasekaran's reappointment for another five years. Voting rights of Tata Trusts nominees and chairman are under close examination. The board is expected to accept the RBI directive, avoiding a contentious meeting. Preparations for a public listing will begin if the directive is operationalized.

Mumbai: The Tata Sons board is heading into Thursday's meeting armed with several legal opinions on two key matters: the central bank's listing directive and the nomination and remuneration committee (NRC) decision to ask chairman N Chandrasekaran to reconsider his plan to step down.

The committee, which has decided to seek Chandrasekaran's reappointment for another five years when his current term ends next February, is likely to meet on Thursday ahead of the board meeting, people familiar with the matter said.

Since the matters are expected to come to a vote, the voting rights of the Tata Trusts nominees and the board chairman under Tata Sons' articles of association are also being looked at closely, an executive said.

ET Bureau

NRC likely to hold a meeting ahead of board meet; matters are expected to go to a vote

The board is expected to accept the Reserve Bank of India directive, but if Tata Trusts chairman Noel Tata presses the board to challenge it, the meeting could turn contentious, said the people.

Both key agenda items are expected to go through, they said.

However, whether Chandrasekaran, if he decides to continue, would be offered another full five-year executive term, or a combination of executive and non-executive tenures, remains to be seen.

The terms of Chandrasekaran's reappointment for another five years will be heavily debated, executives said. The regulatory issue is also expected to have a direct bearing on the leadership question.

The Tata Sons board is not expected to accept any move to challenge the RBI directive, the people ET spoke with said. If the board accepts the instruction, the company will have to move swiftly to operationalise it and begin preparations for a listing in the coming months. Any legal challenge to the RBI directive would have to be mounted by Tata Sons itself, rather than the charitable Tata Trusts that hold a majority stake in it, they said.

Also read: Chandrasekaran's succession, RBI ruling on IPO listing to likely dominate Tata Sons’ Sept 17 meeting

The position could put Noel Tata at odds with the board if he seeks to push for a legal challenge. Since the Sir Ratan Tata Trust is barred from holding meetings and passing resolutions by the Maharashtra Charity Commissioner pending an enquiry into its board composition, the Sir Dorabji Tata Trust may not have enough support for backing any move to oppose the RBI decision.

The two trusts together hold more than half of Tata Sons stake.

There is also a view among company executives that charitable trusts should not be seen as taking on a commercial regulatory dispute involving Tata Sons, people familiar with the matter said.

The RBI rejected Tata Sons' application to surrender its Certificate of Registration to operate as a shadow bank, and directed it to comply with the regulatory framework applicable to top non-bank finance companies, which requires a public listing.

The issue could also test the special voting provisions in Tata Sons' articles of association. Under Article 121, specified matters require the affirmative vote of a majority of Tata Trusts-nominated directors. With two trust nominees having voting rights, a 1-1 split would mean the required majority of nominees is not obtained, effectively neutralising any Tata Trusts veto. The AoA, however, contain specific provisions for different categories of decisions, and the precise voting requirement would depend on the matter before the board.

The key governance question at Tata Sons is how the voting provisions in its articles of association operate where the two Tata Trusts' nominee directors are divided.

Ketan Mukhija, partner at law firm Kochhar & Co, said Article 121 requires the affirmative vote of a majority of the Article 104B directors (trust nominees) present for matters requiring a majority decision of the board, while also providing for a casting vote of the chairman in the event of an equality of votes.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(You can now subscribe to our WhatsApp channel)

Read More News on
Tata SonsReserve Bank of IndiaN ChandrasekaranTata TrustsRBI listing ruleTata groupTata newsTata sons IPO listingKochhar & Coratan tata trust

Enter search text:

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year