3 min readMumbaiUpdated: Aug 6, 2026 11:00 AM IST
The question of whether Tata Sons will pursue a stock market listing remains unresolved, with RBI Governor Sanjay Malhotra saying that the Non-Banking Financial Company–Upper Layer (NBFC-UL) list will be determined under the central bank’s newly introduced principle-based classification framework.
The RBI’s thinking indicates that the revised identification methodology does not alter the Tata Group holding company’s existing regulatory standing.
Addressing queries during the post-monetary policy press conference on Wednesday, RBI Governor Sanjay Malhotra said, “It (the upper list) is now more principle based. The list will come out very soon. But everyone knows which NBFC is in the upper layer, which is in the middle, and which is in the base.”
“All those that meet the criteria will remain in the list,” he said.
On being asked if Tata Sons will remain in the list, “as we said, it is principle based, and that will continue. Let’s not ask questions related to a specific entity.”
While Tata Trusts Chairman Noel Tata and some former Tata Sons directors are against listing the company, two trustees of Tata Trusts — Venu Srinivasan and Vijay Singh — have argued for listing of Tata Sons.
The RBI replaced the previous methodology to determine NBFC-UL with a simple criterion that only NBFCs with assets of Rs 1 lakh crore or more will be classified as NBFC-UL. While this is a major policy shift, it’s not clear whether Tata Sons will qualify as an NBFC-UL.
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The RBI had recently reinstated a key definition on public funds in its revised guidelines for core investment companies (CICs) and upper layer NBFCs. The RBI had originally defined indirect receipt of public funds in a circular issued on April 29 as “funds received not directly but through associates and group entities which have access to public funds.”
The definition was omitted from the central bank’s June 24 circular but reinstated in a footnote in an updated version released on Wednesday, effective July 1, 2026.
Although Tata Sons has had no direct access to public funds since repaying its debt in 2024, it remains an indirect recipient of public funds under the RBI’s definition because listed Tata companies, including Tata Steel, Tata Chemicals and Tata Power, hold equity stakes in it.
The RBI came out with revised guidelines in June this year stating the requirement to qualify as NBFC-UL without giving clarity whether Tata Sons, the holding company of $ 180 billion Tata group, will have to go public with an IPO or not.
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The RBI’s final list of NBFC-UL — which is expected soon — and the qualifying assets are potentially very significant for Tata Sons as they could remove the main regulatory trigger that has kept alive the possibility of a mandatory IPO.
In 2024, the RBI classified Tata Sons as an Upper Layer NBFC (NBFC-UL) because of its size and systemic importance. Under RBI rules, an NBFC-UL is required to list on a stock exchange within three years of being notified and comply with stricter governance and disclosure norms.
That classification effectively put Tata Sons on a path toward a public listing since September 2025, unless the RBI changed the rules or granted relief. Tata Trusts hold 66% stake in Tata Sons.
