The NCLAT has passed the order for Tata Sons to convert back to a public limited company. However, there has been a new dimension from the Ministry of Corporate Affairs (MCA). The MCA has actually moved the NCLAT seeking modification in its order on Tata Sons. It has requested the NCLAT to amend its order and remove the word "illegal" with respect to the conversion of Tata Sons from a public company to private company. MCA has pointed out that the conversion to private is not illegal as per the provisions of the Companies Act.

The order of NCLAT had also insinuated that the ROC had gone out of its way to facilitate the conversion of Tata Sons into a private company. The ROC has pointed out that it had acted in a “bona-fide” manner and wanted that aspersion also deleted from the NCLAT order. It may be recollected that the NCLAT had struck down the conversion of Tata Sons into private company along with striking down the dismissal of Cyrus Mistry from the post of Chairman of Tata Sons and the appointment of Chandra. As a private company, the board of Tata Sons is authorized to take crucial decisions with just the board's approval; and consulting all shareholders was not required.

As far as stock price impact is concerned, it is likely to be very limited for now.