The Reserve Bank of India (RBI) has approved the Tata Capital’s conversion from non-banking finance company (NBFC)–investment credit company (ICC) from a NBFC–core investment company (CIC).
Last year, the central bank categorised Tata Capital and its parent company Tata Sons Pvt as NBFC with an upper layer distinction which requires both companies to go public by September 2025.
On October 22, 2021, the RBI had issued revised scale based regulation (SBR) under which large NBFCs were asked to list their shares on a stock exchange within three years, which meant that the conglomerate should be listed by September 2025 as a compliance requirement.
These regulations were in the wake of IL&FS crisis in 2018.
