, chairman of the SP Group, has welcomed the Reserve Bank of India’s (RBI) decision requiring to comply with regulations governing upper-layer non-bank financial companies (NBFC), PTI reported.
In a statement he said the move could mark a turning point for transparency and accountability at the Tata group’s holding company.
holds about 18.4% of Tata Sons. He said the RBI decision had provided “full clarity” and that he looked forward to working constructively with Tata Sons and the Tata Trusts on the company’s future.
What RBI’s decision mean for Tata Sons
The RBI had earlier rejected Tata Sons’ application to surrender its registration as a core investment company on September 11 and directed it to comply with the applicable regulatory framework.
The decision paves the way for the public listing of Tata Sons after years of efforts to retain its privately held status.
“This landmark decision should not be viewed as a victory of one stakeholder over another. It should be viewed as an opportunity to bring people and institutions together,” Mistry said in a statement.
He said a Tata Sons listing could become a “bridge” between shareholders and the Tata Trusts, as well as between private ownership and public accountability.
Mistry highlights with SP group and Tata groups
Mistry highlighted the more than century-old relationship between the Shapoorji Pallonji and Tata groups, saying it had been built over generations through enterprise, trust and shared experiences.
“I therefore look forward not merely to a resolution of the present chapter, but to forging a greater partnership, greater engagement and deeper relationships with Tata Sons and the Tata Trusts in the years ahead,” he said.
He added that greater public accountability should not come at the expense of the Tata group’s philanthropic mission.
According to Mistry, a listed Tata Sons could provide greater visibility into the value of the holding company, strengthen governance and create a more durable flow of value towards the Tata Trusts’ charitable activities.