Listing of Tata Sons: A critical call

All eyes seem to be on the Reserve Bank of India (RBI) for its decision on whether Tata Sons needs to go for public listing or not, as the deadline set by the regulator for the market debut of the holding company of the steel-to-software conglomerate expired on September 30. The customary monetary policy press conference on Wednesday offered a glimpse into the curiosity around the matter with the RBI governor being asked, among a volley of other questions, about Tata Sons’ listing.

- NIVEDITA MOOKERJI

Without giving away anything on whether Tata Sons has been given an exemption from listing, Governor Sanjay Malhotra only said that an entity which had a registration could do business till it was cancelled.

But, does the future of Tata Sons really rest on whether or not the RBI grants it an exemption? On the face of it, yes, as the world waits to hear the verdict from Mint Road. The reality, however, may not be that simple. Consider the timeline of the developments related to the matter. Exactly three years ago, in October 2022, the RBI classified Tata Sons as an upper-layer non-banking financial company (NBFC), asking it to list by the end of September this year. As the approaching deadline loomed, Tata Sons filed an application to surrender its NBFC-Core Investment Company (CIC) registration. It followed up by clearing its debt, a condition to be declassified as an NBFC-CIC, in August last year. The move by Tata Sons in 2024 was to seek an exemption from listing. The application has been pending with the RBI.