RBI Reviewing Tata Sons’ Request for NBFC De-registration

On Thursday, January 16, the Reserve Bank of India (RBI) announced that it is currently reviewing Tata Sons’ request for de-registration as a non-banking financial company (NBFC). This review does not impact its classification in the upper layer of NBFCs.

The RBI’s statement indicates that Tata Sons could still have an opportunity to avoid the central bank’s requirement for large NBFCs to list on the stock market by September 2025. If the RBI rejects Tata Sons’ application for de-registration, the company would likely need to consider an initial public offering (IPO) within the specified deadline.

In response to a Right to Information (RTI) query, the RBI confirmed that Tata Sons’ request to surrender its Certificate of Registration (COR) as a Core Investment Company (CIC) is still under review. RBI regulations mandate that upper-layer NBFCs must go public within three years of being classified.

Tata Sons was designated as an upper-layer NBFC in September 2022, meaning it has until September 2025 to meet the listing requirement. Tata Sons’ FY23 balance sheet reveals borrowings of approximately ₹20,270 crore. If the company reduces its debt to below ₹100 crore, it could potentially lose its classification as an upper-layer NBFC by the RBI.

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