The listing of Tata Sons continues to hang in the balance, as Reserve Bank of India governor Sanjay Malhotra said on Friday that the central bank is preparing a revised list of upper-layer non-banking financial companies (NBFCs).“Upper layer NBFC list is out there, it continues until we update it.
Will update upper-layer NBFC list shortly,” Malhotra said at a presser after the monetary policy committee meeting.The Mumbai-based Tata Sons had applied for de-registration as an upper-layer NBFC in 2024.
This application is still live with the RBI, and no decision on this has been taken yet, according to the sources at the central bank.Last week, Noel Tata, the chairman of Tata Trusts (which owns 66% stake in Tata Sons) wrote to the central bank opposing the listing, saying it would risk the philanthropic activities of Tata Trusts, according to a Moneycontrol report.At least two of the six Tata trustees – Venu Srinivasan and Vijay Singh – have supported the listing of Tata Sons in media interviews, saying expansion, especially into new areas like semiconductors, will require large capital that cannot be generated internally, according to one report N Chandrasekharan , the current chairman of the 108-year old conglomerate, hasn't taken a public position on the debate.Earlier this month, Shapoorji Mistry of SP Group (which holds an over 18% stake in Tata Sons) issued a public statement urging the RBI to press Tata Sons to list.SP Group has been going through a liquidity crunch and has been lobbying for the listing of Tata Sons, hoping the proceeds will help the group repay its debt.It is pertinent to note that the $180-billion Tata Sons had repaid a debt of over ₹20,000 crore (a little over $2 billion at current exchange rates), so that it stops being a front-facing NBFC, with any kind of public interface, after its board passed a resolution against listing.
The listing of Tata Sons continues to hang in the balance, as Reserve Bank of India governor Sanjay Malhotra said on Friday that the central bank is preparing a revised list of upper-layer non-banking financial companies (NBFCs).“Upper layer NBFC list is out there, it continues until we update it. Will update upper-layer NBFC list shortly,” Malhotra said at a presser after the monetary policy committee meeting.The Mumbai-based Tata Sons had applied for de-registration as an upper-layer NBFC in 2024. This application is still live with the RBI, and no decision on this has been taken yet, according to the sources at the central bank.Last week, Noel Tata, the chairman of Tata Trusts (which owns 66% stake in Tata Sons) wrote to the central bank opposing the listing, saying it would risk the philanthropic activities of Tata Trusts, according to a Moneycontrol report.At least two of the six Tata trustees – Venu Srinivasan and Vijay Singh – have supported the listing of Tata Sons in media interviews, saying expansion, especially into new areas like semiconductors, will require large capital that cannot be generated internally, according to one report N Chandrasekharan , the current chairman of the 108-year old conglomerate, hasn't taken a public position on the debate.Earlier this month, Shapoorji Mistry of SP Group (which holds an over 18% stake in Tata Sons) issued a public statement urging the RBI to press Tata Sons to list.SP Group has been going through a liquidity crunch and has been lobbying for the listing of Tata Sons, hoping the proceeds will help the group repay its debt.It is pertinent to note that the $180-billion Tata Sons had repaid a debt of over ₹20,000 crore (a little over $2 billion at current exchange rates), so that it stops being a front-facing NBFC, with any kind of public interface, after its board passed a resolution against listing.
