Tata Trusts, led by Noel Tata, proposed a restructuring of Tata Sons Pvt. by merging two unlisted units—Tata Electronics Systems Solutions Pvt. and Tata Consulting Engineers—with the holding company to avoid a mandatory public listing. The charities that own 66% of Tata Sons put forward the plan, which requires a non-objection certificate from India’s banking regulator. The goal is to remove Tata Sons from the Reserve Bank of India’s Upper Layer classification for shadow banks, which triggers listing obligations.

The proposal was shared with the Tata Sons board but still needs its approval. This comes after a contentious Sept. 17 board meeting where directors moved toward a public listing per RBI rules, overruling Noel Tata’s objections to keep the company private. The restructuring remains subject to regulatory and internal clearance.