๐๐ก๐ ๐๐ง๐๐ข๐๐ง ๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ ๐๐ฆ๐ฉ๐ข๐ซ๐ ๐๐๐ข๐ง๐ ๐๐จ๐ซ๐๐๐ ๐ญ๐จ ๐ฅ๐ข๐ฌ๐ญ ๐๐ ๐๐ข๐ง๐ฌ๐ญ ๐ข๐ญ๐ฌ ๐ฐ๐ข๐ฅ๐ฅ
The Reserve Bank of India (RBI)‘s directive requiring Tata Sons to list has placed India’s largest conglomerate at the centre of a regulatory standoff, with far-reaching implications for how closely held holding companies are governed and supervised.
The directive follows the RBI’s rejection of Tata Sons’ appeal for an exemption, with a listing potentially valuing the company at more than $120 billion, India’s largest-ever initial public offering.
In this context, Mr. Sumit Agrawal, Managing Partner, Regstreet Law Advisors & former SEBI Officer, was quoted by the Financial Times in their article titled “The Indian business empire being forced to list against its will”.
Mr. Sumit Agrawal stated that litigation through India’s court system has historically run long, and cautioned that Tata’s probability of success in any legal challenge remains low.
According to Mr. Agrawal, Indian courts have historically given the RBI wide deference on prudential and systemic classification matters, generally applying a light-touch reasonableness standard rather than second-guessing the regulator’s technical judgment.
The listing could open some of India’s most valuable and closely held companies to rivals and raiders, with more than two dozen Tata businesses, including Tata Consultancy Services and Trent Ltd, already listed and controlled by Tata Sons through large stakes.
Read the full article at: https://lnkd.in/eqhP6ysS
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