The Reserve Bank of India has written to Tata Sons twice since September 11, seeking an update on the Tata Group holding company’s plans to comply with the mandatory listing requirement, people aware of the matter said.
Tata Sons is compiling its response and has told the central bank that it will expedite the process, the people said. The board remains firm on its decision to comply with the RBI’s directive, they added.
The board is expected to meet to finalise the details of its response, including a time frame for the listing.
At its September 17 meeting, the Tata Sons board resolved to initiate the process for listing the holding company. The move came days after the RBI rejected Tata Sons’ application to surrender its Certificate of Registration (CoR) and directed it to comply with regulations applicable to non-banking financial companies classified in the Upper Layer (NBFC-UL).
At the September 17 meeting, Tata Trusts chairman and Tata Sons nominee director Noel Tata reiterated the Trusts’ position that the holding company should remain privately held. He also sought from Chairman N Chandrasekaran a detailed account of the correspondence between Tata Sons and the RBI on the regulatory and listing issues, the people said.
Tata Sons has since sent Noel Tata a package of documents running into about 600 pages, containing its correspondence with the RBI, people aware of the matter said.
Tata Trusts, which controls about 66% of Tata Sons through the Sir Ratan Tata Trust and Sir Dorabji Tata Trust, had passed a resolution in July 2025 favouring keeping the holding company privately held. The Shapoorji Pallonji Group, the largest minority shareholder with an 18.37% stake in Tata Sons, has taken a different position, viewing a listing as a route to unlock value from its holding and raise funds against its stake.
Tata Sons had applied to the RBI in March 2024 to surrender its registration after repaying its outstanding debt. The move was aimed at exiting the NBFC framework and avoiding the mandatory listing requirement applicable to Upper Layer NBFCs.
The RBI, however, rejected the application and directed Tata Sons to comply fully with regulations applicable to NBFC-UL entities. Tata Sons has been classified as an Upper Layer NBFC since September 2022. Under the RBI’s revised scale-based regulatory framework, an NBFC with assets of Rs 1 lakh crore or more qualifies for Upper Layer classification. Tata Sons had total assets of Rs 2.01 lakh crore as of March 31, 2026.
The company’s three-year deadline for listing as an Upper Layer NBFC expired in September 2025 without the holding company going public. Tata Sons nevertheless continued to pursue deregistration, with its application remaining under examination until the RBI’s September 11 decision.