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The Tatas didn't have a good experience with Tata Finance, where its former chief Dilip Pendse was caught violating SEBI guidelines and was ousted from the job. The Tatas later merged the entity with Tata Motors. But that hasn't stopped India's best known business house from venturing into another one. Tata Sons, the holding company of the Tata group, has floated a financial subsidiary - Tata Capital. This entity will undertake a host of financial activities like capital market services, merchant banking, housing finance, private equity, and vehicle and retail finance. That covers virtually everything in the financial domain.

The company hasn't got a head yet. Business Standard reports that the names of key Tata execs rumoured are Praveen P Kadle, executive director (finance and corporate affairs) of Tata Motors, and Kishore Chaukar, managing director of Tata Industries. Chaukar is also a director of Tata Sons and has experience in the financial services business.

Tata Capital will be independent of other Tata Group companies like Tata AIG Insurance, Tata Asset Management Co and Tata Investment Corporation, which would remain separate entities. (Tata Sons Chairman Ratan Tata in the pic).

Another business house, Anil Ambani's Reliance Capital, also plans to enter investment banking and related activities.