With regulatory requirements mandating NBFCs to list their shares, Tata Group seeks a waiver from the RBI to avoid listing Tata Sons.
In October 2021, the Reserve Bank of India (RBI) revised regulations, mandating large non-banking finance companies (NBFCs) to list their shares within three years. Tata Sons, an Indian conglomerate and a non-banking finance firm, must comply by listing on or before September 2025.
Tata Group has requested a formal waiver from the central bank to avoid listing Tata Sons on stock exchanges. Bloomberg News reported that Tata Sons sought this waiver from the RBI, stating it used proceeds from selling $1.1 billion worth of shares in Tata Consultancy Services to repay loans to foreign and local lenders.
The waiver request indicates Tata Group’s intent to bypass the listing requirement, aimed at enhancing transparency and governance in the NBFC sector. By seeking this exemption, Tata Group aims to retain control over Tata Sons without making it a publicly traded entity.
If granted, Tata Group would evade the regulatory requirement but could face scrutiny over compliance with RBI regulations and corporate governance norms. Investors and industry observers closely watch the RBI’s decision on Tata Group’s waiver request, as it may set a precedent for other large NBFCs seeking similar exemptions.
As of now, neither Tata Group nor the RBI has officially commented on the matter, suggesting ongoing discussions and negotiations between the involved parties.
