Tata Trust, which holds a 66 percent stake in Tata Sons, has proposed merging two operating firms, Tata Electronic System Solutions and Tata Consulting Engineers, into Tata Sons to keep the holding company private. The restructuring plan aims to give Tata Sons its own operating businesses and revenues, helping it exit the regulatory classification of a non-banking financial company and core investment company. Under Reserve Bank of India rules, upper-layer non-banking financial companies are mandated to list on stock exchanges. After the Reserve Bank of India rejected Tata Sons’ request to surrender its financial registration, the proposed operational shift seeks to alter its business profile and bypass mandatory listing requirements.
