New Delhi, Sept. 17 -- Tata Sons Pvt. is said to have approved going public and asked Chairman Natarajan Chandrasekaran to stay on for five more years, as one of India's biggest business houses tries to keep leadership steady through the transition.

The board proposed heeding the Reserve Bank of India's directive on pursuing a listing, according to people familiar with the matter. The directors also asked Chandra, as he's widely known, to stay on to steer the sprawling group.

The Tata Sons listing issue dates back to September 2022, when the Reserve Bank of India classified the company as an upper-layer non-banking financial company. Under the applicable regulatory framework, Tata Sons was required to complete a stock-market listing wit...