This is the first board meeting since Chandrasekaran told directors he would not seek another term. Sources said the board’s Nomination and Remuneration Committee (NRC) may ask him to stay on until the IPO. A change at the top while the company prepares to go public could unsettle investors and the listing process.
The NRC is chaired by independent director Harish Manwani. Its other members include Chandrasekaran, Venu Srinivasan and independent director Anita Marangoly George.
The RBI order
In September 2022, the RBI classified Tata Sons as an “upper layer” non-banking financial company (NBFC). Under RBI rules, such companies must list on the stock exchanges within three years.
Tata Sons wanted to stay private. In March 2024, it applied to give up its NBFC registration, and repaid more than ₹21,000 crore of debt to qualify. The company stayed unlisted past the September 2025 deadline while the RBI considered its plea.
Last week, the RBI rejected the application. Sources said the listing question could now be settled unless the Tata Trusts decide to challenge the regulator in court. The RBI has pre-emptively filed a caveat in the Bombay High Court, sources added.
A Tata Sons IPO could be among the largest India has seen.
The Tata Trusts, which own about 66% of Tata Sons, have long wanted the company to remain unlisted. Tata Trusts chairman Noel Tata has opposed a listing and reportedly made it one of his conditions for backing Chandrasekaran’s renewal earlier this year. The Shapoorji Pallonji Group, which owns about 18%, has been pushing for a listing.
The Chandrasekaran question
Chandrasekaran has led Tata Sons since February 2017. His second five-year term ends on February 20, 2027. He has not resigned. In August, he wrote to the board saying he would not seek reappointment once his current term ends.
The issue had been building for months. In July 2025, the two main Tata Trusts backed a fresh five-year term for him and asked him to keep Tata Sons unlisted. But at a board meeting in February 2026, concerns were raised over losses and capital allocation at some group companies, including Air India and Tata Digital. The matter was deferred instead of being put to a vote.
Chandrasekaran’s letter referred to one board member not supporting his reappointment. His decision came before the RBI order, and the ruling has since changed the picture.
The Charity Commissioner case
The search for a new chairman is complicated by a legal dispute at Sir Ratan Tata Trust (SRTT), one of the two biggest shareholders in Tata Sons.
In 2025, Maharashtra amended its public trusts law, limiting trustee tenures and the number of lifetime trustees. A complaint filed by Katyayani Agrawal, along with a representation from trustee Venu Srinivasan, alleged that three of SRTT’s six trustees held lifetime appointments in violation of the amended law. Tata Trusts disputes this, arguing the change applies only to future appointments.
In May 2026, the Maharashtra Charity Commissioner directed SRTT to defer its board meeting while it looks into the matter. SRTT has not been able to hold trustee meetings since, which also affects its ability to vote on key Tata Sons decisions, including who leads the company. It is also why the two Trusts could not nominate a joint representative for the Tata Sons AGM, which was adjourned for the first time in the group’s history.
A separate case is also before the Charity Commissioner. Mehli Mistry, a close associate of the late Ratan Tata, has challenged his removal as a trustee. Tata Trusts has time until October 15 to respond.
Also Read: Explained | How Tata Sons listing may affect Tata Group shareholders
