RBI Governor on Tata Sons Listing: Why do big companies and Core Investment Companies (CICs) like Tata Sons have to register with the Reserve Bank (RBI)? RBI Governor Sanjay Malhotra himself has given a big statement on this question. Speaking at the NDTV World Summit 2026 held in New Delhi on October 23, the Governor made it clear that these companies sit at the top of the corporate group and manage huge funds, hence it is very important for them to be registered to keep the financial system safe.
RBI Governor Sanjay Malhotra has refused to say anything directly on the ongoing controversy regarding the listing of Tata Sons in the stock market. However, he clarified that as per RBI rules, NBFCs and Core Investment Companies (CICs) falling in the upper layer are required to be listed in the stock market.
What did the RBI Governor say on the listing of Tata Sons?
At the NDTV World Summit 2026, Sanjay Malhotra was asked a question regarding the listing of Tata Sons. He said that as per the policy of RBI, no comment is made on the matter of any particular company or regulated entity.
Can companies avoid listing?
The RBI Governor was also asked whether a company can avoid the condition of listing by making changes in its structure. On this he said that if a company comes under the purview of NBFC and CIC and has direct or indirect access to the fund, then it will have to get registered. The rule of listing will apply once it comes to the upper layer.
Let us tell you that CICs are such holding companies, which mainly invest in other companies of their own group. RBI places larger and more supervised NBFCs in the upper layer.
Why did RBI make registration mandatory?
Malhotra said that such companies are above the entire group and they can pose a risk to the system. These companies can raise funds by borrowing and can depend on the balance sheets of other companies of the group to repay them. In such a situation, the money raised by common people through bank loans, corporate bonds and other means can come at risk. For this reason, RBI has made registration mandatory for such CICs.
Tata Sons did not get relief from RBI
About six weeks ago, RBI had rejected Tata Sons’s application to give up CIC registration. The company had given this application in March 2024 and had also repaid its loan to fulfill the conditions of exit from registration. Tata Sons was placed as an upper layer NBFC in September 2022. Such NBFCs have to be listed in the stock market within three years.
Tata Trusts and Shapoorji Pallonji Group face to face
The board of Tata Sons has taken steps related to possible listing, but has also said that other options should also be considered. Differences on this issue are increasing within the group. Tata Trusts hold about 66% stake in Tata Sons and are against the listing. On September 28, the trusts had proposed to merge Tata Electronics Systems Solutions and Tata Consulting Engineers into Tata Sons. Trusts say that the company with the changed structure will be neither an NBFC nor a CIC. He has asked the board of Tata Sons to obtain No-Objection Certificate (NOC) from RBI.
Source: ndtv.in
