The Tata Sons board on Thursday voted to reappoint N Chandrasekaran as chairman for a third five-year term, reversing his decision to step down, PTI reported.
The development comes days after the Reserve Bank of India rejected Tata Sons’ application to surrender its registration as a non-banking financial company (NBFC), potentially reviving the prospect of a listing of the group’s holding company.
The board is understood to have favoured continuity in leadership amid the regulatory uncertainty and a possible listing process.
The Nomination and Remuneration Committee is expected to formally ask Chandrasekaran, 63, to reconsider his decision to leave, which he had communicated to the board in August before the RBI’s decision.
Noel Tata, chairman of Tata Trusts, which along with affiliated trusts controls about 66% of Tata Sons, voted against the reappointment, the sources said. The resolution, however, was approved by a majority.
The board’s decision is also expected to put on hold the chairman-selection process initiated by the Sir Dorabji Tata Trust.
Tata Sons and Tata Trusts did not immediately comment on the development.
The RBI classified Tata Sons as an ‘upper layer’ NBFC in September 2022, requiring it to list within three years. The deadline expired in September 2025 while the company’s application seeking deregistration remained pending. The RBI rejected the application on September 11.
Chandrasekaran has headed Tata Sons since 2017, when he succeeded Ratan Tata, and was reappointed for a second term in 2022.
His decision to step down had followed differences with Noel Tata over issues including a possible listing and capital allocation to newer group businesses such as Air India, Tata Digital and BigBasket.
The board had deferred a decision on his third term in February, following discussions on the issue. Tata Sons had subsequently begun exploring possible successors, with names including Tata Steel chief executive TV Narendran, Tata Sons group chief financial officer Saurabh Agrawal and National Stock Exchange chief executive Ashish Chauhan being discussed.
A potential listing of Tata Sons could rank among the largest initial public offerings in India. The company holds controlling stakes in several listed Tata group companies across sectors including automobiles, steel, information technology, hospitality and aviation.
(With inputs from PTI)
