The Tata Group has requested a waiver from the Reserve Bank of India (RBI) in order to avoid listing its holding company and non-banking finance firm, Tata Sons, ET Now has reported citing agencies.
According to regulations revised by the RBI in October 2021, large non-banking finance companies (NBFCs) must list their shares on a stock exchange within three years.
The conglomerate needs to thereby be listed by September 2025 at the latest in order to comply with this regulation.
In February, ET had reported that Tata Sons has been exploring the possibility of being exempted from October 2021 notification, that included it among the top 10 non-banking financial companies (NBFCs) in terms of asset size.
The RBI also included the non-deposit-taking core investment company in the list of 16 NBFCs in the upper layer (UL).
The RBI has been tightening the regulatory framework for NBFCs after the collapse of IL&FS in 2018. NBFC-ULs will be subject to a more stringent disciplinary structure and have to be more transparent with their financials.
Tata Sons is a systemically important investment company and borrows heavily from the banking system, ET had reported.
