Sebi monitoring Tata Group governance developments, says chairman Tuhin Kanta Pandey

Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey on Saturday said the market regulator is monitoring governance-related developments at the Tata Group's holding company, Tata Sons, while stressing that the group's listed companies and their promoters are subject to SEBI's disclosure and compliance requirements.

The comments come amid differences over governance matters at Tata Sons, including the reappointment of N Chandrasekaran as chairman and the question of whether the holding company should be listed. "At the holding company level, there are some issues, as that's not really a listed company. The rest of the companies, those which are listed, follow all the LODR (Listing Obligations and Disclosure Requirements) norms," Pandey told reporters on the sidelines of the launch of the Bharat Chamber Investors Forum.

Asked whether Sebi was keeping track of developments within the Tata Group, Pandey said the regulator has to "keep monitoring all the developments". He did not, however, refer to any specific governance violation or indicate that SEBI was considering regulatory action against the group.

Tata Group's listed companies

The distinction between Tata Sons and the group's listed companies is significant from a regulatory perspective. While Tata Sons is not a listed entity, the Tata companies that trade on stock exchanges are required to comply with Sebi's LODR framework, which covers areas including corporate disclosures, governance and obligations towards shareholders.

The Tata Group has 26 publicly listed companies, with a combined market capitalisation of $328 billion as of March 31, 2025, according to its FY25 annual report. Seven listed Tata companies collectively hold around 11.92% in Tata Sons, according to an analysis by governance advisory firm InGovern. These companies are Tata Steel, Tata Motors Passenger Vehicles, Tata Chemicals, Tata Power, Indian Hotels, Tata Consumer Products and Tata Investment Corporation. Together, they have more than 1.77 crore shareholder or folio accounts.

Tata Trusts holds around 66% of Tata Sons, while the Shapoorji Pallonji Group holds approximately 18.4%. The developments come as questions around Tata Sons' ownership structure, leadership and proposed listing remain under discussion. Sebi's latest comments indicate that while the holding company itself falls outside the direct framework governing listed entities, the regulator continues to watch developments that could have implications for the group's publicly traded companies.

Pandey earlier said Sebi is focused on making India's capital markets more accessible, efficient and resilient, while strengthening investor protection. He said Indian companies have raised more than ₹10 lakh crore annually on average through equity and debt issuances over the past decade. He also said markets must remain resilient during periods of stress.

With inputs from PTI