New Delhi, September 12 (Daily Kiran) : The Reserve Bank of India (RBI) has turned down Tata Sons’ request to terminate its registration as a Core Investment Company (CIC). According to reports, this decision means that the company will still be subject to regulatory requirements related to being listed on the stock market.
Sources cited by NDTV Profit indicate that Tata Sons was classified as an upper-layer non-banking financial company (NBFC) in 2022 and remains on the RBI’s upper-layer NBFC list for the fiscal year 2026-27. Companies in this category face stricter regulatory scrutiny akin to that of banks.
Tata Sons previously argued to the RBI that it no longer needed to maintain its CIC registration since it is now debt-free. However, the central bank did not accept this rationale.
The RBI had previously informed Tata Sons of the requirement to be listed by September 2025. Since the company is still considered an upper-layer NBFC under regulatory frameworks, the associated listing rules remain significant.
Additionally, the RBI has rejected industry calls to increase the asset threshold for classifying large NBFCs or to maintain the existing complex risk-based methodology. Instead, the central bank has opted for a simpler framework, focusing on the size of the balance sheet. Under the revised criteria, NBFCs with independent assets of ₹1 lakh crore or more will face stringent regulatory oversight, which may include future listing requirements.
Tata Sons has long opposed public listing, believing that it would lead to increased disclosures, compliance processes, and regulatory obligations. As the principal holding company of the Tata Group, a potential listing could significantly impact the ownership structure and shareholders.
This development occurs amid a leadership transition at Tata Sons, as Chairman N. Chandrasekaran has decided not to seek another term, prompting the search for his successor. Recently, the company had to postpone its annual general meeting (AGM) due to insufficient quorum, marking the first time in its history that such a postponement has occurred, reportedly due to a restriction linked to the Sir Ratan Tata Trust.
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