RBI Keeps Tata Sons In Upper Layer NBFC List, De-Registration Plea Still Under Review

The Reserve Bank of India (RBI) has retained Tata Sons in its latest list of Upper Layer Non-Banking Financial Companies (NBFC-UL), indicating that the group's application to exit the framework has not yet been approved.

The RBI said Tata Sons' application for de-registration as a Core Investment Company (CIC) remains under examination. It clarified that the company's inclusion in the Upper Layer list is "without prejudice" to the outcome of that application.

The move means Tata Sons will continue to remain under the enhanced regulatory framework applicable to Upper Layer NBFCs until the central bank takes a final decision on its de-registration request.

Exit Application Still Awaiting RBI Decision

Tata Sons had applied to surrender its CIC licence to avoid the mandatory listing requirement applicable to Upper Layer NBFCs. The holding company was first classified as an NBFC-UL in 2022 and was expected to list within three years under the RBI's framework.

However, the central bank has not yet approved the request. The RBI said Tata Sons' application continues to be under examination.

The RBI also reiterated that once an NBFC is classified as an Upper Layer entity, it remains subject to enhanced regulatory requirements for at least five years, even if it no longer meets the eligibility criteria in subsequent years.

Listing Uncertainty Continues

Tata Sons, the principal holding company of the Tata Group, is registered as a Core Investment Company and had assets of nearly ₹1.75 lakh crore as of March 31, 2026, well above the RBI's prescribed threshold for Upper Layer classification.

The latest Upper Layer list also includes government-owned NBFCs such as REC, Power Finance Corporation (PFC) and Indian Railway Finance Corporation (IRFC), along with PNB Housing Finance and Sammaan Capital.

The RBI has exempted eligible government-owned NBFCs from the mandatory listing requirement. Tata Sons, however, has sought to exit the NBFC framework altogether. Earlier this year, media reports said Tata Trusts Chairman Noel Tata had written to the RBI opposing a potential listing of Tata Sons, arguing that it could alter the long-term character of the holding company and affect the Trusts' philanthropic objectives.