Tata Sons listing a social, ethical necessity: SP Group's Shapoor Mistry
Shapoorji Pallonji Group Chairman Shapoor Mistry on Friday described the proposed listing of Tata Sons as a social and moral imperative, a day after Tata Trusts opposed the decision and said all available options should be considered.
Mistry welcomed the Reserve Bank of India's decision concerning Tata Sons saying it had brought complete clarity and that a listing would strengthen transparency and accountability.
His comments came a day after Tata Trusts said it was not in favour of listing Tata Sons and that all available options should be considered, not just listing.
Mistry also said the Shapoorji Pallonji Group was open to positive engagement with Tata Sons.
The statement come amid a growing dispute between Tata Trusts and the Tata Sons board over the listing of the Tata Group's flagship holding company.
Tata Trusts which holds a 66 per cent stake in Tata Sons has opposed the listing, while the Tata Sons board approved the proposal at its meeting on Thursday.
Tata Trusts Chairman Noel Tata reiterated the Trust's position in a statement to the Tata Sons board, saying the board had already taken a decision on the listing issue.
"Such a matter requires papers, clarifications, advice and time and I have no doubt that these are being prepared. The Board will be fully informed," Noel Tata said in the statement.
He also said the RBI's order did not specifically refer to a listing.
"The RBI order has no mention of 'listing'," Noel Tata said and added that it did not refer to any specific action and did not state that Tata Sons had violated any regulations.
Noel Tata further stated that the board had not yet formed an opinion on the legal implications of the RBI's communication, including what Tata Sons was required to do and by when.
