To avert listing, Noel submits Tata Sons revamp plan to RBI

Maharaja Noel Tata has unveiled a plan to merge two Tata Sons subsidiaries with the 109-year-old holding company in a bid to escape RBI's regulatory strictures and sidestep a public listing. The proposal, submitted to Tata Sons and the regulator, was revealed just 11 days after the board preferred a listing to meet RBI's upper-layer norms for a core investment company or non-banking financial company.

This marks a shift from Tata Sons' past restructuring efforts, such as the demerger of Tata Consultancy Services in 2004. The move would also preclude minority shareholder Shapoorji Pallonji Group's plans for an IPO. The proposal, while potentially sidestepping regulatory hurdles, could potentially compromise Tata Sons' operating revenues if it later list subsidiaries or induct external investors.