RBI rejects Tata Sons' CIC deregistration request, listing requirement remains: Report
New Delhi, Sept 12
The Reserve Bank of India has rejected Tata Sons' request to deregister as a Core Investment Company, according to a report.
NDTV Profit reported -- citing sources -- a decision that means the Tata Group holding company will have to comply with the stock market listing requirement.
Tata Sons was classified as an upper-layer non-banking financial company (NBFC) in 2022 and has been retained in the RBI's upper-layer NBFC list for 2026-27, it added.
Tata Sons had sought deregistration after becoming debt-free, arguing that it no longer needed to remain registered as a CIC.
The RBI had earlier required Tata Sons to list its shares by September 2025, according to the report.
The central bank has also rejected industry demands to raise the asset threshold or retain a more complex risk based methodology for classifying large NBFCs, the report said.
Instead, the RBI has opted for a simplified framework based primarily on balance-sheet size.
Under the revised norms, NBFCs with standalone assets of at least Rs 1 lakh crore will face enhanced regulatory oversight similar to banks, including an eventual requirement to list on stock exchanges.
Tata Sons has long opposed a public listing, saying such a move would increase compliance and disclosure requirements, as per reports.
As the principal holding company of the Tata Group, a listing of Tata Sons could have significant implications for the conglomerate's ownership structure and shareholders.
The upper-layer classification subjects NBFCs to tighter regulatory requirements aimed at strengthening governance, risk management and financial resilience.
Earlier in August, Tata Sons' Annual General Meeting (AGM) called off due to a lack of quorum which was the first time in the holding company's history that an AGM has been deferred. The development was linked to a restriction involving the Sir Ratan Tata Trust (SRTT).
The deferred meeting comes at a time when Tata Sons is preparing for a leadership transition following Chairman N. Chandrasekaran's decision not to seek another term. His move has triggered the process of identifying a successor, with the Sir Dorabji Tata Trust commencing the search exercise.
— IANS
Leave a comment