Source: News Bharati English25 Oct 2016 10:57:07
Mumbai, October 24: There has been fuss all amongst the business groups as Tata announced the replacement of Cyrus Mistry, aged 48, on Monday in a sudden state of mode. The 78-year-old Tata head Ratan Tata will take in charge for a while after the exit of Mistry.
The official signed letter by Ratan Tata read,” The board of directors of Tata Sons has in its meeting today replaced Mr Cyrus P Mistry as chairman with immediate effect. In the interim, the Board has requested me to perform the role of the chairman and I have agreed to do so in the interest of stability of and reassurance to the Tata group.”
The speculations are in full form as the Tata group has not cleared the exact reason. however according to the proxy advisory firms there was a case of “failed experiment” in succession. The founder of Ingovern Research Services, Shriram Subramanian said, ““Obviously, it is an experiment in succession that did not work. The reasons are still unclear. They had taken years to zero in on Mistry after an international search. And, this new group has only four months to choose a new chairman.”
On the comeback of Ratan Tata, the CEO of PMS, Ajay Bodke opined, “"What could provide reassurance to the market is the fact that Mr. Ratan Tata is back in saddle as the interim Chairman and also the tight deadline of 4 months given to the Selection Committee by the Board of Tata Sons. Also, the Selection Committee comprises of venerable corporate leaders. After the initial wobble the stocks should stabilize in my view."
By 9:50 am, the S&P BSE Sensex was down 91 points at 28,088 and the Nifty50 dipped 35 points at 8,683. Among broader markets, BSE Midcap and Smallcap indices are down 0.3%-1%.