Tata Sons, the holding company of the Tata Group, today announced the formation of a wholly-owned subsidiary, Tata Capital, which will spearhead its new activities in financial services.Tata Capital is proposed to enter the area of capital market services, merchant banking, housing finance, private equity investments, assets and vehicle financing, retail finance and related areas.These will be undertaken either in the subsidiary companies or divisions of Tata Capital, depending on the regulatory requirements.The existing Tata companies in financial services - Tata AIG Insurance, Tata Asset Management Company (which manages the Tata Mutual Fund) and TataInvestment Corporation - in all of which Tata Sons has a substantial direct holding, will continue to remain separate entities and function as at present.
