The Reserve Bank of India (RBI) Governor Sanjay Malhotra rejected Tata Sons’ bid to shed its non-bank lender status leaving little doubt that the Tata Group holding company must list publicly as long as it remains classified as an upper-layer (UL) non-banking financial company (NBFC) and core investment company (CIC).
\n\nGovernor's remarks appear to settle a debate sparked by Noel Tata, chair of Tata Trusts, Tata Sons’ largest shareholder, who had argued that RBI’s Sept 11 order, which rejected the holding company’s request to deregister as a CIC and directed it to comply with UL-NBFC regulations, did not explicitly mandate a listing.
\n\nThe governor declined to be drawn into the question of Noel Tata’s proposal to merge two Tata Sons subsidiaries with the holding company, a move that could help it sidestep a stock market listing.
\n\n“NBFCs and CICs, like for example Tata Sons and others, are required to be registered with us because of the systemic risks,” he said.
\n\n“As long as 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,” he…
Original source: https://www.timesnownews.com/business-economy
