SEBI Says It Is Monitoring Tata Group Developments Amid Governance Disputes at Tata Sons

The Securities and Exchange Board of India (SEBI) is monitoring developments related to corporate governance at Tata Sons, the holding company of the Tata Group, Chairman Tuhin Kanta Pandey said on Saturday.

His remarks come amid disagreements within Tata Sons over key issues, including the reappointment of N Chandrasekaran as chairman and whether the holding company should be listed on the stock exchanges.

Speaking to reporters on the sidelines of the launch of the Bharat Chamber Investors Forum, Pandey said SEBI’s regulatory requirements apply to Tata Group companies that are listed, even though Tata Sons itself is not listed.

“At the holding company level, there are some issues, as that's not really a listed company. The rest of the companies, those which are listed, follow all the LODR (Listing Obligations and Disclosure Requirements) norms,” he said.

Pandey added that listed companies and their promoters must comply with the applicable disclosure and regulatory requirements.

When asked whether SEBI was monitoring developments within the Tata Group, he confirmed that the regulator was following the situation.

The SEBI chairman did not identify any specific instance of regulatory non-compliance or announce any action against the group.

Tata Group’s Listed Companies and Tata Sons’ Ownership Structure

The Tata Group had 26 publicly listed companies, with a combined market capitalisation of $328 billion as of March 31, 2025, according to the group’s FY25 annual report.

An analysis by governance advisory firm InGovern found that seven of these listed companies collectively held approximately 11.92% of Tata Sons. These companies also had more than 1.77 crore shareholder or folio accounts.

The seven companies are Tata Steel, Tata Motors Passenger Vehicles, Tata Chemicals, Tata Power, Indian Hotels, Tata Consumer Products and Tata Investment Corporation.

These companies form part of the group’s broader portfolio of 26 listed entities. The seven were specifically identified in the analysis because of their shareholdings in Tata Sons.

Tata Trusts holds approximately 66% of Tata Sons, while the Shapoorji Pallonji Group owns around 18.4%.

Leadership and Listing Questions Remain Unresolved

The latest comments from SEBI come as Tata Sons faces questions about its leadership and ownership structure.

Noel Tata, chairman of Tata Trusts, has challenged the board’s decision to reappoint Chandrasekaran for another five-year term. The disagreement has brought differences within the holding company’s leadership into public view.

Separately, Tata Sons’ proposed listing has become a point of contention among stakeholders. The Reserve Bank of India’s regulatory position on the company’s classification has added to the debate over whether it must list its shares publicly.

While Tata Trusts has raised concerns about the leadership decision and the company’s future structure, the Shapoorji Pallonji Group has supported the proposed public listing.

Against this backdrop, SEBI’s comments underline the regulator’s continued monitoring of developments involving the group, while reiterating that its listed companies and their promoters remain subject to the prescribed disclosure and compliance rules.