In an important escalation of the debate around the listing of Tata Sons and its impact on the Shapoorji Pallonji (SP) Group, Shapoorji Pallonji Mistry, chairman of the SP Group, which owns 18.4% stake in Tata Sons, the unlisted holding company of the $180-billion Tata Group, has once again reiterated the need for the public listing of the holding company.

Shapoorji Pallonji Mistry, chairman of the SP Group, said in a statement on Friday: “As I have stated earlier, we would like to reiterate that a timely listing of Tata Sons is not merely a regulatory compliance but a necessary evolution.”

Mistry made the case that the listing will “reinforce corporate governance, deepen transparency and accountability. These form the very foundation of the Tata Group.”

Pointing out a public listing will do more good than harm, Mistry said in the statement: “To date, no clear, evidence-based case has been presented to explain how a public listing would materially damage the interests of the trusts or reduce their ability to serve beneficiaries.”

The statement went on to mention that “the listing of Tata Sons is fundamentally in the public interest. A publicly listed holding company strengthens board accountability, broadens the investor base, and secures long-term value for all stakeholders. Besides, a listing will unlock value for millions of retail shareholders, create a more defined and robust dividend stream for the Tata Trusts, and expand the social and philanthropic impact that benefits the poorest sections of our country.”

Mistry believes the Tata group’s trust, integrity and public purpose will only be strengthened through complying with the Reserve Bank of India (RBI)-mandated listing. “While we remain in constructive engagement with the Tata Sons leadership to come to an amicable reconciliation at the earliest, we look towards the Reserve Bank of India for a decisive direction with regards to the listing. We repose full faith in the government of India and the Reserve Bank of India to act decisively,” concluded the statement.

Noel vs Chandra: Tata Sons private status is one condition

The statement comes follows the recent boardroom tensions that emerged at Tata Sons meeting held on February 24, where Tata Trusts Chairman Noel Tata had sought a clear roadmap from Tata Sons chairman Natarajan Chandrasekaran, that besides containing group losses, had to proactively engage with the SP group to find ways and means for the group to unlock value of their holding in Tata Sons without going in for a listing.

It was one of the conditions tied to Chandrasekaran’s extension for a potential third term as the current tenure ends in February 2027. Chandrasekaran himself sought a deferment of a decision on the extension, seeking unanimity between the Tata Trusts and Tata Sons.

Noel Tata has also sought a clear commitment from Chandrasekaran that Tata Sons will stay private and not get listed. An application for this has already been filed by Tata Sons with the Reserve Bank of India, though the central bank has not responded to the request yet.

All eyes on the RBI

The Reserve Bank of India’s scale based regulation framework classified Tata Sons as an Upper Layer NBFC  (NBFC-UL)—based on certain qualitative and quantitative parameters and supervisory judgment—triggering a mandatory listing. All eyes are now on the RBI and whether the new framework for categorization of NBFCs, expected by the end of April, will include Tata Sons or whether regulator will accede to the Tata Group’s request.

In 2024, Tata Sons applied to surrender its Core Investment Company registration, the specific category with in the NBFC framework that attracted the listing obligation. To qualify for that, Tata Sons repaid over Rs 20,000 crore in debt, reducing its borrowings to a level that would remove it from the regulatory trigger. The company was, however, included in the January 2025 circular of upper-layer NBFCs.

(For details of why Tata Sons wants to remain unlisted, read the April 2026 issue of Fortune India, out now)