Mumbai: The Tata Group today announced having formed a new, wholly owned company to undertake new activities in the financial services. The new entity, Tata Capital Ltd, will be a wholly owned by Tata Sons Ltd, the holding company of the Tata Group.

These companies are Tata AIG Insurance, Tata Asset Management, which manages the Tata Mutual Fund and Tata Investment Corporation. Tata Sons has a direct and substantial holding in all these companies.

Tata Capital will enter areas such as capital market services, merchant banking, housing finance and private equity investments, assets and vehicle financing, retail finance and other related areas.

These businesses would be undertaken either in subsidiary companies or divisions of Tata Capital, depending on regulatory requirements, the release said.

The existing Tata companies in the financial services area would continue to remain separate entities and function as at present.