Mumbai, Sept. 29 -- In a move to preserve Tata Sons Private Limited (TSPL) as an unlisted private entity, Tata Trusts-which holds a 66% controlling stake-has proposed merging operating companies Tata Electronics Systems Solutions (TESS) and Tata Consulting Engineers (TCE) into TSPL.

The reorganisation aims to alter the group holding company's asset structure, stripping it of its NBFC classification.

Weighing in on the regulatory shift, advocate and corporate law expert HP Ranina told ANI that if it becomes an operating company and ceases to derive a major portion of its income from investments or hold major investments, it will cease to be an NBFC.

"Once the merger takes place, the company will only have to inform the RBI that it no lo...