The country's central bank, the Reserve Bank of India (RBI), decided to reject Tata Sons' application to deregister as a Non-Banking Financial Company (NBFC). This decision brings the holding company closer to the necessity of listing on the stock market.
A source close to the matter reported that the RBI proactively approached the courts requesting to be heard in any case related to Tata Sons' listing.
Reuters reported on Saturday that the RBI sent its decision to Tata Sons in writing. According to local media, there are factions within the group that oppose the listing.
The RBI filed what is known as a 'caveat' in the Bombay High Court. This will allow the central bank to be heard if the applicant challenges its decision or requests a stay of that decision. The source specified that this was done 'as a routine measure to be heard in any proceedings challenging the decision or requesting a stay.'
Tata Sons, the century-old holding company of the Tata Group, manages enterprises such as Tata Consultancy Services, Tata Motors, Tata Steel, and Air India. Shares of the group companies rose on Tuesday.
The company falls under the jurisdiction of the RBI because it is currently registered as a company engaged in primary investments. According to RBI regulations, all non-banking financiers, including primary investment companies with assets exceeding 1 trillion rupees (US$10.45 billion) or having access to public funds, are required to be listed.
As of the latest available data for March 2025, Tata Sons reported individual assets of 1.75 trillion rupees.