The Reserve Bank of India (RBI) has rejected Tata Sons’ application to surrender its Certificate of Registration as a Core Investment Company (CIC), sources told ET Now. The central bank communicated its decision to Tata Sons through a letter. Tata Sons had applied to the RBI in 2024 seeking to deregister as a CIC. Following the rejection, Tata Sons will be required to list its shares under RBI rules governing CICs, sources said.
The decision is important because Tata Sons had sought deregistration as part of its efforts to avoid the requirement of publicly listing its shares. With the RBI turning down the request, Tata Sons will now have to comply with the rules applicable to NBFCs classified in the upper layer, including the listing requirement.
The RBI’s decision closes a route that Tata Sons had pursued to remain outside the mandatory listing requirement. The holding company was among the entities identified by the central bank as an upper-layer NBFC. Under the revised regulatory framework, entities classified in this category face stricter compliance requirements, including a requirement to list.
The RBI revised its scale-based regulatory framework in June 2026 and set an asset threshold of Rs 1 lakh crore for classification in the upper layer. Tata Sons had total assets of Rs 2.01 lakh crore as of March 31, 2026, putting it well above that threshold.
Tata Sons has been classified among upper-layer NBFCs since 2022. The company had also repaid its outstanding debt as part of its efforts to qualify for deregistration and avoid a public listing.
Deregistration Rules Pose A Hurdle
The regulatory framework sets specific conditions for an NBFC seeking deregistration. An entity must not hold public funds, must not have customer interface and must have assets below Rs 1,000 crore to qualify for deregistration by the applicable deadline.
Tata Sons’ size and regulatory classification make those conditions particularly significant.
The RBI has also maintained that once an NBFC enters the upper layer, it remains subject to the stricter regulatory framework for a minimum of five years, even if it subsequently falls outside the criteria during later assessments.
RBI Governor Sanjay Malhotra had earlier indicated that the revised upper-layer classification was based on clearly defined principles. “So, as per those principles, everyone knows what the list is. And so that is where the matter stands,” Malhotra said in response to a question on whether Tata Sons would remain in the upper layer.
Tata Trusts, SP Group On Opposite Sides Of Listing
The potential listing also has implications for Tata Sons’ shareholders. Tata Trusts, which controls 66 per cent of Tata Sons through the Sir Ratan Tata Trust and Sir Dorabji Tata Trust, passed a resolution in July 2025 seeking to retain the holding company as a privately owned entity.
The Shapoorji Pallonji Group, meanwhile, holds an 18.37 per cent stake in Tata Sons and has viewed a public listing as the most practical route to unlock the value of its investment.
The SP Group is seeking to monetise part of its Tata Sons holding to repay a portion of its estimated Rs 60,000 crore debt. Some of its shares in Tata Sons have also been pledged to raise funds.
