- RBI pressed Tata Sons for mandatory listing plans.
- RBI rejected Tata Sons’ attempt to avoid NBFC listing.
- Trusts oppose listing; SP Group seeks public value.
Tata Sons is reportedly preparing to outline how it will meet the Reserve Bank of India’s (RBI) mandatory listing requirements after the central bank sought an update on its compliance plans.
The regulator has written to the Tata Group’s holding company twice since September 11, asking about its road map for complying with the rules applicable to upper-layer non-banking financial companies (NBFCs), reported The Financial Express.
Tata Sons has informed the RBI that it will expedite the process and is compiling its response, the report said citing people aware of the matter. The company’s board remains committed to complying with the central bank’s directive.
The board is expected to meet to finalise the details of the response, including the proposed time frame for listing.
Why Tata Sons Is Required To List
Tata Sons has been classified as an Upper Layer NBFC (NBFC-UL) since September 2022. Under the RBI’s revised scale-based regulatory framework, NBFCs with assets of Rs 1 lakh crore or more fall within this category.
Tata Sons reported total assets of Rs 2.01 lakh crore as of March 31, 2026, placing it within the regulatory classification.
The company was required to complete its listing within three years of being classified as an Upper Layer NBFC. The deadline expired in September 2025, but Tata Sons remained privately held.
Instead of proceeding with a public listing, the company had continued to seek an exit from the NBFC regulatory framework.
In March 2024, Tata Sons approached the RBI to surrender its Certificate of Registration (CoR), following the repayment of its outstanding debt. The application was aimed at removing the company from the NBFC framework and avoiding the listing requirement applicable to Upper Layer entities.
The RBI rejected the request on September 11 and directed Tata Sons to comply with the regulations governing NBFC-UL entities. The application had remained under examination until the regulator’s decision.
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Tata Trusts Wants The Holding Company To Remain Private
The listing issue has also brought differing shareholder positions into focus.
Tata Trusts, which holds around 66% of Tata Sons through the Sir Ratan Tata Trust and Sir Dorabji Tata Trust, has maintained that the holding company should not go public.
The Trusts passed a resolution in July 2025 supporting the continuation of Tata Sons as a privately held entity.
At the September 17 board meeting, Noel Tata, chairman of Tata Trusts and a nominee director on the Tata Sons board, reiterated this position, people aware of the discussions said.
Noel Tata also sought a detailed account from Tata Sons Chairman N Chandrasekaran of the correspondence between the company and the RBI regarding the regulatory issues and listing requirements.
Tata Sons has subsequently sent Noel Tata a package of documents running into approximately 600 pages, containing its correspondence with the central bank, the people said.
Shapoorji Pallonji Group Sees Value In A Public Listing
The Shapoorji Pallonji Group, which owns an 18.37% stake in Tata Sons and is its largest minority shareholder, has taken a different position on the listing.
The group views a public listing as an opportunity to unlock value from its investment in Tata Sons and raise funds against its shareholding.
The difference in positions between Tata Trusts and the Shapoorji Pallonji Group comes as the holding company moves towards preparing its compliance response.
At its September 17 meeting, the Tata Sons board resolved to initiate the listing process, following the RBI’s rejection of the application to surrender its registration.
The latest correspondence with the regulator and the board’s proposed discussion on the response are expected to address the timeline for meeting the listing requirement.
Tata Sons has yet to complete the listing, even though the three-year compliance deadline expired in September 2025.
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