Mumbai: The Reserve Financial institution of India (RBI) on Thursday retained Tata Sons — the principal holding firm of the Tata Group — in its checklist of 15 upper-layer non-bank financiers for FY25, however mentioned it’s “with out prejudice” to the corporate’s software to get itself deregistered.
Additionally learn | Tata Sons pays ₹20,000 crore debt to keep away from obligatory itemizing: Report
The RBI categorized Tata Sons as an upper-layer non-banking monetary firm (NBFC) in September 2022, and it should due to this fact be listed on the inventory exchanges by September 2025 until it manages to get an exemption or will get deregistered. The Financial Instances reported on 6 January that Tata Sons voluntarily surrendered its certificates of registration with the RBI final 12 months.
Beneath examination
On Thursday, the RBI mentioned that the applying was “beneath examination”.
RBI laws classify NBFCs into 4 layers based mostly on their measurement, exercise and perceived dangers. The higher layer includes outstanding names like Tata Sons, LIC Housing Finance and Shriram Finance. These within the higher layer are topic to better regulatory scrutiny than their smaller friends.
The regulator mentioned in its 2021 pointers that upper-layer NBFCs have to be listed inside three years of being recognized as one. A couple of, reminiscent of Piramal Capital and Housing Finance and Aditya Birla Finance, have tried to sidestep this by asserting mergers with their listed dad and mom.
Mint reported in August how Tata Sons turned debt-free in a bid to keep away from getting listed. Tata Sons had no loans from banks and different monetary establishments as of 30 June, as towards ₹18,809 crore or 44% of its whole liabilities in the identical interval final 12 months.
In the meantime, RBI mentioned on Thursday that regardless of qualifying as an upper-layer NBFC as per scoring methodology, Piramal Enterprises isn’t being included within the checklist within the present assessment as a result of ongoing reorganization within the enterprise group. In Might 2024, Piramal Enterprises Ltd introduced it’ll merge with its unlisted subsidiary Piramal Capital and Housing Finance Ltd.
