A view of a Bombay House, the headquarters of the Tata Group | Photo Credit: PTI

Acceptance or rejection of Tata Sons’ pending plea for surrendering its registration as a Core Investment Company (CIC) by the Reserve Bank of India alone may decide whether it stays private or has to get listed, according to experts.

The aforementioned observation comes in the backdrop of RBI issuing Amendment Directions on June 24 on ‘the methodology for identification of NBFC-UL and inclusion of government-owned NBFCs in NBFC-UL’, whereby ₹1 lakh crore and above has been finalised as the asset size criteria for classifying a non-banking financial company in the upper layer (UL).

NBFCs in the UL category are subject to enhanced regulatory requirement. The application of the Tata Group’s holding company for de-registration as a CIC is pending with RBI since March 2024.

Asset size criteria

Going by the asset size criteria, Tata Sons, which was to get listed by September 2025 per the regulatory criteria that requires NBFCs in the UL category to get listed within three years of them being identified as one, may have to get listed. It has a standalone asset size of about ₹1.75 lakh crore.

Akshat Khetan, Founder AU Corporate Advisory and Legal Services, said: “The RBI has replaced regulatory subjectivity with a bright-line test. For Tata Sons, the question is no longer whether it qualifies as an upper layer NBFC, it clearly does on asset size. The only unresolved issue is whether its pending deregistration plea succeeds; that alone will determine whether the listing mandate crystallises.”

A senior executive with a credit rating agency observed that if Tata Sons is included in the new list of NBFCs in the upper layer under scale-based regulation for NBFCs, it may have no choice but to get listed. However, if the central bank accepts Tata Sons’ plea for de-registration as a CIC, it can continue to stay private.

In the April 8, 2026, post Monetary Policy Committee press meet, RBI Governor Sanjay Malhotra said: “We are coming up with a new framework for the categorization of NBFCs into upper, middle layer, etc. “

Within Tata Sons Private Ltd, the Shapoorji Pallonji (SP) Group is vociferously batting for its listing. It has 18.37 per cent equity stake in the Tata Group holding company. This group is reportedly wanting to unlock value so that it can pare its debt. Its listing stand is being backed by a couple of Tata Sons board members.

However, Noel Tata, representing the interests of various Tata Trusts as a nominee Director, is in the camp opposed to the listing of Tata Sons. Various Tata Trusts collectively hold 66 per cent stake in Tata Sons.

16 NBFCs

There were 16 NBFCs were identified as being in the UL per RBI’s first list released in September 2022. The entities in the list included Aditya Birla Capital, Bajaj Finance, Cholamandalam Investment and Finance Company, HDB Financial Services, HDB Financial Services, LIC Housing, Shriram Finance, and Tata Sons Private Ltd, among others.

These NBFCs were identified based on parametric scoring methodology, comprising quantitative and qualitative parameters as well as supervisory judgment. Now, the central bank will be classifying NBFCs one based on asset size.

Published on June 25, 2026