Ratan Tata was named the interim chairman of Tata Sons on Monday, the company's board announced after deciding to replace Cyrus Mistry as the chairman. The decision was made at a board meeting, during which a selection committee was also formed to choose the next head of the holding company.

Ratan Tata, Amit Chandra, Venu Srinivasan, Lord Kumar Bhattacharya and Ronen Sen are part of the committee, which was constituted in accordance with the Articles of Association of Tata Sons. The panel has four months to select the next chairman.

A spokesperson said that the company's board and principal shareholders had made the decision believing that it would be "appropriate in the long-term interests of Tata Sons and the Tata Group", according to IANS. "There is no change in the CEOs at the operating level," the official said.

While the conglomerate has not shared its reasons for the decision, speculation about Mistry's focus on profit-making ventures and "shedding of non-profit businesses" were rife, PTI reported. Mistry was appointed as the chairperson in 2011 on the basis of his representation from Shapoorji Palonji, the largest shareholder in Tata Sons.

Tata Sons is the principal investment holding company and promoter of the Tata Group of companies.