Welcoming Reserve Bank of India’s (RBI's) decision rejecting Tata Sons Pvt Ltd’ application to surrender its registration and paving way for listing, Shapoor Pallonji Mistry, chairman of Shapoorji Pallonji (SP) group, the second largest stakeholder in Tata Sons said, the move provides clarity on the way forward and creates an opportunity to strengthen transparency, accountability and governance at the Tata group’s holding company.
In a statement, Mr Mistry said, “I have repeatedly said that the public listing of Tata Sons is not merely a financial or regulatory matter. It is a social and moral imperative. It is about strengthening transparency and public accountability in one of India’s most consequential business institutions, while preserving and advancing the extraordinary philanthropic purpose that lies at the heart of the Tata legacy.”
“This landmark decision should not be viewed as a victory of one stakeholder over another. It should be viewed as an opportunity to bring people and institutions together. The listing of Tata Sons can become a bridge. A bridge between shareholders and Trusts, between private heritage and public accountability, between generations of stewardship, and between India’s great past and the extraordinary future that lies ahead,” he added.
Tata Sons had been classified as an upper-layer non-banking financial company (NBFC) under the RBI’s scale-based regulatory framework and the prescribed listing requirement followed from that regulatory framework. RBI rejected Tata Sons’ application to surrender its registration and directed the company to take the necessary steps to comply with the applicable regulations.
The RBI’s decision, announced earlier this month, has put Tata Sons on a path towards complying with regulatory requirements applicable to upper-layer NBFCs, including the requirement to be listed.
Mr Mistry, whose SP group holds an 18.37% stake in Tata Sons, said the central bank had provided 'full clarity' and praised RBI and the government for maintaining the regulatory framework.
“With the RBI having rejected the application to surrender its registration and directing Tata Sons towards the necessary compliance at the earliest, the path forward is clear,” he said.
Mr Mistry said greater transparency could broaden participation, provide greater visibility into value, protect legitimate investor interests and provide a basis for a more robust and equitable dividend policy.
He also linked greater transparency at Tata Sons with the long-term philanthropic ambitions of the Tata Trusts.
“The Tata Trusts are among India’s most important philanthropic institutions,” Mr Mistry said, adding that he would like to see the Trusts become 'one of the largest and most consequential philanthropic corpuses in the world' over the next five years.
According to Mr Mistry, a stronger Tata Sons operating transparently and responsibly could support that ambition through sustained business growth and a durable flow of value towards philanthropy.
Appeal for Reconciliation
Mr Mistry sought to frame the listing issue as an opportunity for greater cooperation rather than a contest between stakeholders. “This landmark decision should not be viewed as a victory of one stakeholder over another. It should be viewed as an opportunity to bring people and institutions together,” he said.
He described the listing as a potential 'bridge' between shareholders and the Tata Trusts, private heritage and public accountability, and different generations of stewardship.
His comments come amid a broader governance dispute within Tata Sons. The Tata Sons board has decided to proceed with the listing in line with the RBI’s directive, while Tata Trusts chairman Noel Tata has opposed the move. The board has also approved a five-year extension for Tata Sons chairman N Chandrasekaran, a decision opposed by Noel Tata.
Mr Mistry's statement takes a markedly conciliatory position on the relationship between the two major shareholder groups.
“The relationship between the Shapoorji Pallonji and Tata group is itself more than a century old,” he said, adding that it had been built over generations through enterprise, trust and shared experiences.
He said he looked forward to 'forging a greater partnership, greater engagement and deeper relationships' with Tata Sons and the Tata Trusts.
Focus on Investors and Philanthropy
Mr Mistry also highlighted the millions of Indians who have invested in listed Tata companies and said a publicly accountable holding company could strengthen the relationship between those investors and the wider Tata institution.
“Transparency, in my view, is the truest form of respect for both legacy and the future,” he said.
The SP group's position is significant because it is Tata Sons’ second-largest shareholder. The group's 18.37% holding makes it an important stakeholder in any future changes to Tata Sons’ ownership and corporate structure.
Mr Mistry said the Tata group is entering a period in which its businesses would be involved in sectors such as semiconductors, advanced manufacturing, aviation, defence, artificial intelligence, digital technologies, energy and strategic infrastructure.
“These are not simply new businesses; they are capabilities that will shape India’s economic sovereignty and competitiveness in the decades ahead,” he said.
He said he wanted Tata Sons to evolve into a 'modern, globally respected and publicly responsible holding institution' capable of creating value for shareholders while maintaining its philanthropic commitments and placing national interest at the centre of long-term decisions.
‘Nation Comes First’
Mr Mistry also praised prime minister (PM) Narendra Modi for what he described as a commitment to institution-building, transparency and accountable governance. He specifically cited the establishment and development of NITI Aayog, as well as the government’s stated respect for RBI autonomy.
He said the empowerment of institutions to act according to law and public interest was a defining feature of statesmanship.
The statement also invoked the founding philosophy of Jamsetji Tata, quoting his well-known view that the community is the ultimate purpose of enterprise.
Mr Mistry said that philosophy should inform the next phase of Tata Sons, arguing that the debate should go beyond ownership and corporate structure to the larger question of how the institution can become 'stronger, more transparent, more accountable and more capable of serving the nation'.
He called on Tata Sons, Tata Trusts, trustees, shareholders, employees and other stakeholders to approach the listing issue in a spirit of cooperation.
“Let us not allow the listing to become even a minor point of division. Let us use it as a bridge. Let us make it an opportunity for reconciliation, renewal and a stronger institutional future,” he said.
Mr Mistry said the Shapoorji Pallonji group was ready to work with Tata Sons and sought a 'deeper, more harmonious, and supportive relationship' with the Tata institution.
The RBI’s decision, he said, could ultimately become more than the resolution of a regulatory question and instead mark a significant development in Indian corporate governance.
“It can become a landmark in the evolution of Indian corporate governance – an affirmation that scale and heritage can coexist with transparency; that philanthropy can coexist with public accountability; and that great private institutions can evolve in step with the aspirations of a great nation,” Mr Mistry said.
He concluded by reiterating his position that the objective should not be victory for one stakeholder over another, but a stronger Tata institution, stronger philanthropy, greater accountability and deeper cooperation.
“For me, the principle has always been simple. Our nation comes first,” he said
