Tata Group shares under pressure ahead of Sept 17 Tata Trusts meeting; Tata Investment, Tata Chemicals fall up to 7%
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Shares of Tata Group companies saw broad-based selling pressure on Wednesday, with Tata Investment Corporation and Tata Chemicals leading the decline after their sharp rally in the previous session, amid uncertainty ahead of the Tata Trusts meeting scheduled for September 17.
Tata Investment Corporation shares fell 7.06% to ₹667.60 on the BSE, while Tata Chemicals declined 4.29% to ₹703. Tata Teleservices fell 4.09%, Tata Steel dropped 1.64%, Tata Capital slipped 1.60%, Tata Elxsi declined 0.97%, Tata Power was down 0.58%, and Tata Consultancy Services (TCS) fell 0.64%.
Other Tata Group stocks also traded lower, including Indian Hotels, Nelco, Tata Technologies and Voltas.
The selling came a day after several Tata Group stocks rallied following the Reserve Bank of India’s (RBI) decision to reject Tata Sons’ application to surrender its registration as a core investment company (CIC), bringing the long-pending listing of the group’s holding company back into focus.
Attention is now turning to the Tata Trusts meeting scheduled for September 17 in Mumbai, with leadership succession, governance and the potential Tata Sons listing expected to remain key areas of focus.
The RBI last week rejected Tata Sons’ application to surrender its CIC registration. Tata Sons had filed the application in March 2024 after taking steps to strengthen its balance sheet, including repaying more than ₹21,000 crore of debt, in a bid to exit the regulatory framework that would otherwise require it to list on stock exchanges.
The RBI had classified Tata Sons as an NBFC in the upper layer in September 2022, bringing it under a stricter regulatory framework that required the company to list within three years. The deadline expired in September 2025 without Tata Sons going public.
In a letter dated September 11 addressed to Tata Sons, Sudarsana Sahoo, chief general manager, Department of Regulation, RBI Central Office, Mumbai, said the regulator had examined all aspects of Tata Sons’ request for voluntary surrender of its certificate of registration.
The RBI rejected the application, saying the request “cannot be acceded to”.
“As such, we advise you to take necessary actions to ensure full compliance with all guidelines/instructions, as applicable to NBFC-Upper Layer (UL) issued by the RBI, immediately,” the letter stated. A copy of the letter was seen by Fortune India.
Suspense over Tata Sons board meeting
Uncertainty ahead of the Tata Trusts meeting scheduled for September 17 continued to weigh on Tata Group stocks. The meeting is being closely watched amid the renewed focus on a potential Tata Sons listing following the RBI’s rejection of the company’s request for exemption from the CIC framework.
The meeting also assumes significance following Tata Sons Chairman N Chandrasekaran’s decision not to seek another term. Against this backdrop, attention is likely to centre on three issues: the potential listing of Tata Sons, the leadership succession plan and the ongoing governance deadlock within Tata Trusts.
The previous meeting on August 18 was adjourned after Tata Sons failed to meet the quorum requirement, as the Sir Ratan Tata Trust (SRTT), another key shareholder, was unable to nominate a representative due to a regulatory restriction imposed by the Maharashtra Charity Commissioner. SRTT holds a 23.56% stake in Tata Sons.
The restriction has delayed the nomination of a joint representative by the two principal Tata Trusts. The Charity Commissioner is yet to allow SRTT trustees to convene a board meeting to select and nominate a representative for the Tata Sons AGM.
The SRTT board was barred from meeting in May amid an inquiry into alleged violations of trustee composition rules under Section 30A(2) of the Maharashtra Public Trusts Act. The complaints, including one filed by Tata Sons vice chairman Venu Srinivasan, alleged that SRTT had breached the statutory 25% limit on lifetime or perpetual trustees.
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