The Tata Sons board approved Chandrasekaran’s reappointment by a 4-1 vote, while Chandrasekaran abstained from voting. The development comes after the Reserve Bank of India rejected Tata Sons’ request to surrender its core investment company registration, keeping the possibility of a listing of the holding company in focus.
Tata Sons has said it will seek guidance from the RBI, Tata Trusts and other stakeholders on the regulatory requirements.
Tata Sons is the holding company for several listed and unlisted Tata Group companies and is majority-owned by Tata Trusts.
Earlier, while announcing his decision not to seek reappointment after his current term, Chandrasekaran did not name the person who opposed the proposal for his reappointment. However, reports have suggested key differences between Chandrasekaran and Noel Tata, who is Chairman of Tata Trusts and a board member of Tata Sons.
“The Trusts’ position remains unchanged, as a considered judgement of a majority shareholder. This position was reiterated in today’s board meeting by the Chairman, Tata Trusts,” Tata Trusts said in an official statement on September 17.
After Tata Sons’ board meeting on September 17, Tata Trusts reiterated its position on Chandrasekaran’s reappointment, with Noel Tata voting against the motion. The Trusts also advised Tata Sons to initiate the process of setting up a Selection Committee for appointing a successor.
“The Tata Trusts maintain that the Resolution to re-appoint Mr N. Chandrasekaran as Chairman, Tata Sons, is illegal,” Tata Trusts said in its statement.
The divide in the Tata Sons board comes amid reports of key differences between Chandrasekaran and Noel Tata, who took charge as Chairman of Tata Trusts in 2024 after Ratan Tata’s demise.
Noel Tata is looking to keep Tata Sons unlisted, explore options for Shapoorji Pallonji Group’s exit and formulate a five-year strategic roadmap for the Group. Chandrasekaran reportedly did not agree, leading to disagreements that also involved questions of board representation.
Originally, the Dorabji Tata Trust and Ratan Tata Trust resolved and recommended the extension of Chandrasekaran’s tenure for an upcoming period of five years.
Earlier this week, Tata Group stocks came under buying interest from investors after the Reserve Bank of India rejected Tata Sons’ application to deregister as a non-banking financial company (NBFC).
The RBI decision somewhat revived the potential for Tata Sons, the flagship Tata Group holding entity, to be listed on the Indian stock market. However, Tata Trusts Chairman Noel Tata on September 17 asked Tata Sons to explore options other than listing to preserve the more than century-old structure of Tata Sons and the Tata Group.
The developments were reflected in Tata Group stocks during morning market hours on September 18. Tata Chemicals was trading at ₹723.55, down 8%, while Tata Consultancy Services was at ₹2,129, down 3.4%. Tata Investment Corp. stood at ₹695, down 5.1%, and Tata Technologies was at ₹738, down 2.8%.
Tata Power was trading at ₹365, down 2.1%, while Tata Motors PV stood at ₹306, down 3.3%. Tata Motors CV was at ₹433.45, down 1.3%, and Tata Steel was at ₹187, down 1%. Tata Consumer Products was trading at ₹1,008.70, down 0.5%, while Tata Capital was at ₹348, up 1.8%.
According to NSE data, the figures were recorded as of 9:50 am IST on September 18, 2026.
At the board meeting on Thursday, Noel Tata also tabled a proposal received from the Shapoorji Pallonji Group (SP Group) to monetise a portion of the Tata Sons shareholding held by Sterling Investments Corp. and Cyrus Investments.
Under the proposal, the SP Group seeks a stake sale of a number of Tata Sons shares held by Sterling Investments Corp. and Cyrus Investments at a minimum valuation yield of ₹25,000 crore.
The proposal further stated that the share buyout would be carried out in two tranches over 18 months, as Tata Sons would initiate a selective capital reduction process through the NCLT.
“Noel N. Tata suggested that various avenues could be used for the purpose of raising the funds required for this purpose, including from internal cashflows; sale of listed shares; bringing in an investor into some of the newer businesses and listing, upon an offer for sale, of some of the businesses,” according to the statement.
Tata Trusts Chairman Noel Tata also requested Tata Sons board members to take the necessary steps to initiate the NCLT process and authorise the operating teams of Tata Sons and the Tata Trusts to continue discussions with the SP Group and the bankers and report back to the Board.
The board’s decision on Chandrasekaran’s reappointment, the Tata Trusts’ opposition, the RBI’s decision on Tata Sons’ regulatory status and the SP Group’s ₹25,000 crore liquidity proposal have placed the future structure and governance of the Tata Sons holding company firmly in focus.
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