Tata Sons listing: RBI files caveat in Bombay High Court over mandatory listing

The Reserve Bank of India (RBI) has filed a caveat petition in the Bombay High Court in connection with the mandatory listing of Tata Sons, seeking to ensure that the central bank is heard before the court passes any order if a petition is filed in the matter.

The caveat appears to be a pre-emptive move by the RBI to ensure that the court considers its explanation and position regarding its decision to reject Tata Sons’ plea to deregister as a Core Investment Company, a move that requires Tata Sons to list on the stock exchanges.

A person aware of the development said the RBI may have expected Tata Sons to pursue legal recourse against its decision. The RBI did not respond to an email from The Indian Express for a response. On September 11, the RBI rejected the application of Tata Sons, seeking to remain an unregistered core investment company.

Instead, the central bank directed the company to “ensure full compliance with all guidelines/instructions,” effectively requiring Tata Sons to undertake an initial public offering (IPO) and list its shares on the stock exchanges.

The listing of Tata Sons has been one of the key issues dividing the trustees of Tata Trusts which collectively hold about 66 per cent of the company through various entities. The RBI’s decision comes at a critical juncture for the Tata Group which is searching for a new chairman to replace N Chandrasekaran.

With the board not unanimous on his reappointment, he announced that he would step down at the end of his current term on February 20, 2027. Tata Sons is also considering legal options on lifting the freeze on the board proceedings of the Sir Ratan Tata Trust (SRTT).

An order issued by the Charity Commissioner in May has effectively prevented the trust from conducting board proceedings while an inquiry into the composition of its board is pending. This has created a procedural hurdle for Tata Sons.

In the absence of a duly convened SRTT board meeting, the trust cannot jointly nominate a representative with the Sir Dorabji Tata Trust. Such a joint nomination is required under the Articles of Association of Tata Sons to meet the quorum requirement for its annual general meeting (AGM).

The AGM of Tata Sons can be held only after the Sir Ratan Tata Trust, which holds a 23.56 per cent stake in Tata Sons, is able to obtain relief from the restraining order issued by the Maharashtra Charity Commissioner. George Mathew is an Associate Editor with The Indian Express, based in Mumbai.

A veteran of financial journalism with nearly three decades of experience, he is one of the country’s most authoritative voices on banking, regulation, and the corporate sector. Expertise & Focus Areas Mathew’s reporting covers the nerve center of India’s economy.

His specialized beats include: The Reserve Bank of India (RBI): He has tracked the central bank's policy evolution through the tenures of multiple Governors, offering deep insights into monetary policy, repo rates, and banking regulation.

Banking & Insurance: Extensive coverage of public and private sector banks, non-performing assets (NPAs), and key legislative reforms like the Insurance Amendment Bills. Corporate Affairs: Mathew frequently breaks major stories related to India's largest conglomerates, with a specific focus on the Tata Group, documenting boardroom shifts and strategic decisions.

Financial Markets: Reporting on the complexities of Foreign Portfolio Investors (FPIs), IPOs, and currency fluctuations. Authoritativeness & Insight With a career dating back to the late 1990s, Mathew possesses a rare institutional memory of India’s financial liberalization and market crises.

His work is not limited to daily news; he frequently contributes to the "Explained" section, where he decodes complex financial legislations and market trends for a broader audience. His rigorous reporting has also been featured in scholarly platforms like the Economic and Political Weekly (EPW).

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