SEBI's constant vigil on governance matters in Tata Group

SEBI Chairperson Tuhin Kanta Pandey stated on Saturday that the market regulator is monitoring developments concerning governance matters at the holding company level in the Tata Group. He clarified that the group's companies that are listed on the stock exchange and their promoters are subject to all regulations related to SEBI's disclosure and compliance.

Speaking to reporters at the launch event of the Bharat Chamber Investors Forum, Pandey stated, "There are some issues at the holding company level, as it is not actually a listed company. The rest of the companies, which are listed, comply with all LODR (Listing Obligations and Disclosure Requirements) regulations." When asked whether SEBI is keeping an eye on developments in the Tata Group, he answered in the affirmative and said that it is necessary to monitor all developments.

These statements have come amid differences regarding governance matters in Tata Sons. These disputes involve the reappointment of N. Chandrasekaran as Chairman and the question of the company's proposed listing. However, Pandey did not mention any specific governance violation or regulatory action against the group in his statement.

26 companies of the Tata Group are publicly listed. According to the group's FY2025 annual report, the combined market capitalization of these companies stood at $328 billion as of March 31, 2025. According to an analysis by governance advisory firm InGovern, out of these 26 listed companies, seven listed companies collectively hold a stake of approximately 11.92 percent in Tata Sons. These seven companies include Tata Steel, Tata Motors Passenger Vehicles, Tata Chemicals, Tata Power, Indian Hotels, Tata Consumer Products, and Tata Investment Corporation.

These seven companies have more than 1.77 crore shareholders or folio accounts. Speaking of the stake in Tata Sons, Tata Trusts holds a stake of approximately 66 percent, while the Shapoorji Pallonji Group holds a stake of around 18.4 percent. Tata Sons is the principal entity of the Tata Group, which itself is not listed, but its subsidiaries are mandatory to comply with SEBI regulations.