RBI Governor Sanjay Malhotra told NDTV’s World Summit on Friday that Tata Sons must list publicly because it remains an upper‑layer NBFC with assets of ₹2.01 lakh crore as of March 31 2026.
The central bank first flagged Tata Sons as a UL‑NBFC in 2022 and set a three‑year deadline for a market debut. The holding company tried to ditch its CIC registration after trimming debt to zero, but the RBI rejected the move on September 11, saying it "cannot be acceded to". Under RBI rules, any UL‑NBFC with assets over ₹1 lakh crore or direct access to public funds must be listed.
On September 17, the Tata Sons board met to discuss the RBI letter. Noel Tata, the group’s largest shareholder, argued that the order does not explicitly require listing and that the company should explore alternatives. The board, however, agreed to comply with RBI regulations but left the listing decision open.
Malhotra warned that a breach of the listing rule puts the company at risk of enforcement action, citing systemic risk that UL‑NBFCs can create for the financial system. He said, "If it is an NBFC within our definition, it’s a CIC and has access to funds direct or indirect, it’s required to be registered and if it is in the upper layer, it is required to list."
A 12‑year‑old Tata Steel worker in Jamshedpur said the slow move to comply could delay new plant approvals that would create jobs for the local community. He added, "We’re waiting for the bank’s decision; the company’s uncertainty affects us all."
The Tata Sons board will vote on the listing decision in its next meeting, and the RBI may issue enforcement action if compliance is not met.