RBI Files Caveat In Bombay HC Over Tata Sons Listing Case

The Reserve Bank of India has filed a caveat in the Bombay High Court to ensure it is heard in any legal proceeding connected to the potential listing of Tata Sons, according to a Reuters report.

A caveat is a legal filing that allows a party to be notified and heard before a court passes any order, including a stay, in a case it may not yet be party to. The RBI's filing means it will get an opportunity to present its position if any petitioner moves court against its recent decision on Tata Sons or seeks to stall it.

The filing has been described as a routine measure meant to safeguard the central bank's right to be heard, the report noted. The RBI has also informed Tata Sons about the caveat, the report said.

Deregistration Request Turned Down

The development follows the RBI's rejection of Tata Sons' request to voluntarily give up its Certificate of Registration as a non-banking financial company. The holding company had sought this route to be classified as an unregistered Core Investment Company, which would have kept it out of mandatory listing requirements.

With the request denied on September 11, Tata Sons has been asked to comply with norms applicable to an NBFC in the Upper Layer category. Under RBI rules, non-bank lenders, including core investment companies, with assets above roughly ₹1 lakh crore or access to public funds must list on stock exchanges. Tata Sons reported standalone assets of ₹1.75 lakh crore as of March 2025, the most recent figure available.

According to a Bloomberg report, Tata Trusts chairman Noel Tata was not expecting the RBI's decision and is examining options to contest it along with his advisers, since a listing could reshape the Trusts' hold over the group.

Board Split Over Listing

Tata Sons' six-member board is reportedly scheduled to meet on Thursday to decide the company's next steps. The meeting comes at a time when trustees remain divided over both a listing and the selection of a new chairman.

An earlier Mint report said Noel Tata favours keeping Tata Sons private, while Venu Srinivasan, vice chairman of Tata Trusts and the Trusts' second nominee on the Tata Sons board, has shifted his position to support a public listing. Separate reports suggest outgoing chairman N Chandrasekaran, who resigned last month, may extend his tenure, originally set to end in February 2027, to maintain stability during the transition.

Tata Sons, the Tata Group's century-old holding company, oversees businesses such as Tata Consultancy Services, Tata Motors, Tata Steel and Air India, and comes under RBI oversight as a registered core investment company.