Tata Sons revises rules, may curb Tata trusts' board influence
Tata Sons is reworking its company rules to match listing requirements of the Securities and Exchange Board of India, or SEBI, which could mean Tata Trusts, which currently have a big say in who joins the board, might see their influence reduced.
This shift comes after the Reserve Bank of India, or RBI, said Tata Sons will stay classified as a core investment company, so they have to follow stricter governance standards.
Tata Trusts face SEBI rights review
Because Tata Trusts own about 66% of Tata Sons, any rule changes hit them directly.
Now, SEBI says special rights (like picking board members) need to be reviewed and approved by shareholders at least once every five years.
So while the Trusts keep their big stake, their ability to control the board may shrink as the company adapts to new rules and higher governance standards.