Shapoorji Pallonji Group backs RBI on Tata Sons listing

The Shapoorji Pallonji (SP) Group, which holds about 18.4% of Tata Sons, has welcomed the Reserve Bank of India's (RBI) decision to reject Tata Sons' application to surrender its non-banking financial company (NBFC) registration. The group described the public listing of Tata Sons as a social and moral imperative that would enhance public accountability.

The SP Group owns its stake in Tata Sons through two investment companies, Sterling Investment Corporation Private Limited and Cyrus Investments Private. This 18.4% holding makes it the second-largest shareholder in Tata Sons.

In a statement, the SP Group said that with the RBI having rejected the application to surrender Tata Sons' NBFC registration and directing the company to comply with regulatory requirements at the earliest, the path forward is clear. The group emphasized that the public listing should not be viewed merely as a financial or regulatory matter but as a social and moral responsibility.

The RBI had classified Tata Sons as an Upper-Layer NBFC under its scale-based regulatory framework. This classification mandates certain compliance and listing routes, which the SP Group supports. The group believes that listing Tata Sons publicly will strengthen transparency and accountability while preserving the philanthropic ethos of the company.

The SP Group's endorsement comes amid ongoing discussions about Tata Sons' governance and regulatory status. The group’s chairman expressed support for the RBI’s decision and the necessity of adhering to the prescribed regulatory framework.

Other reported figures about Tata Sons’ shareholding and financial details vary widely and remain unconfirmed by multiple sources. The SP Group’s stake of 18.4% is the most consistently reported figure across sources.

Experts have weighed in on the matter, underscoring the importance of good governance and regulatory compliance for companies of Tata Sons’ stature. The RBI’s directive is seen as a step towards ensuring that Tata Sons aligns with the regulatory framework applicable to its classification.

The SP Group’s statement and support for the listing add a significant voice in the ongoing discourse about Tata Sons’ future corporate structure and regulatory compliance.