Mumbai, Sept. 30 -- Tata Trusts' proposal to merge Tata Consulting Engineers (TCE) and Tata Electronics Systems Solutions Pvt. Ltd (TESS) into Tata Sons is centered on the two companies' clean shareholding structures and significant revenues-factors that could help the holding company potentially avoid classification as a non-banking financial company (NBFC) without altering its shareholding structure, according to experts.

Both companies are wholly owned within the Tata Sons structure, meaning the proposed mergers would not bring additional shareholders onto Tata Sons' shareholding structure. TCE is a 100% direct subsidiary of Tata Sons, while TESS is wholly owned by Tata Electronics, which in turn is wholly owned by Tata Sons. That str...