BREAKING
Sting operation controversy turns spotlight on CongressFIR lodged over posters questioning govt performance in Delhi MetroWoman’s body found in forestSalman Khan career at crossroads! Is the Bollywood superstar losing box-office dominance?Hyd builds homes, but where is the water?Immersion by boat processionSalaar 2: ‘Dino-mite duo’ Prabhas and Prashanth Neel set for another action spectacleIGBC seeks tax rebates for green homesKiran Abbavaram unveils ‘Bhaja Govindam’ from ‘Reality’Tata Sons must list if it remains upper-layer NBFC: RBI
Business

Tata Sons must list if it remains upper-layer NBFC: RBI

hellohimachalse@gmail.com 24 Oct 2026 2 hours ago

New Delhi: RBI Governor Sanjay Malhotra on Friday justified the classification of Tata Sons as an upper-layer NBFC, saying that any large NBFCs or core investment companies that handle public funds or leverage a group’s balance sheet need to be registered with the central bank and follow the requisite listing norms.

Large NBFCs and core investment companies (CIC) like Tata Sons and others are required to be registered with the RBI because of the systemic risks, because they sit on top of group companies where they leverage funds and they use the balance sheets of the group companies to return those funds, he said.

“So, the funds of the public, whether it is through corporate bonds, banks and other means, that is at risk…so, it is for these reasons that these CICs, or NBFCs, are required to be registered,” he said.

CICs that do not have direct or indirect access to public funds are exempt from the registration requirement, he said. “As long as it is an NBFC within our definition, it is a CIC, it has access to funds, direct or indirect, it’s required to be registered, and if it is in the upper layer, then it is required to list,” he said.

Last month, the RBI rejected Tata Sons’ application to surrender its non-banking finance company (NBFC) licence, which will force a public listing of the holding company of the salt-to-software conglomerate Tata Group.

This makes a public listing of Tata Sons imminent as it qualifies as an upper layer NBFC, which must mandatorily list on the stock exchanges. Tata Sons was placed in the upper layer in September 2022. It had applied in March 2024 to surrender its registration, and had repaid its debt in an effort to qualify for deregistration.

The Tata Sons board has since moved ahead with steps linked to a possible public listing, while saying it will examine other options amid a deepening row within the conglomerate.

Malhotra reaffirmed the central bank’s primary objective is maintaining price stability with inflation targeting while supporting long-term economic growth.

Related News