Time seems to be rapidly ticking for Tata Sons to go public on the stock exchange, with RBI yet to take a call on its application to surrender its registration as a core investment company (CIC).

The RBI had earlier set September 2025 as the deadline for the mandatory public listing of core investment companies including Tata Sons. However, Tata Sons is not in favour of getting listed and has applied to voluntarily surrender its core investment company registration in March this year. Eight months later, the RBI is yet to decide on the application.

RBI’s response

In response to a Right to Information request filed by an investor, the RBI confirmed on November 14 that Tata Sons submitted its application to relinquish its CIC registration on March 28. “The application submitted by Tata Sons for the surrender of the certificate of registration as a CIC is under examination,” said the RBI in response to the RTI.

Tata Sons, classified as a CIC under the RBI’s Scale-Based Regulation (SBR) framework, must go public within 10 months to meet the deadline. However, the company’s application to surrender its CIC status was seen as a potential way to sidestep this requirement, allowing it to remain private and avoid public listing obligations.

The SBR framework, introduced in 2022, imposes tighter governance and transparency norms on systemically important non-banking financial companies.

As an “upper layer” NBFC, Tata Sons is required to adhere to the public listing requirement.

Listing challenges

Merchant bankers believe that Tata Sons would require six to eight months to prepare for an IPO. “Typically, companies must plan well in advance when they go for an IPO. With no clarity from the from RBI, Tata Sons could be in a spot since it does not want to list but at the same time it has to meet the deadline for compliance,” said a banker.

Incidentally, Tata Sons has repaid outstanding standalone debts, possibly to facilitate the relinquishment of its RBI registration.

If successful, the company would be exempt from SBR listing norms, bypassing the governance and transparency requirements mandated for listed companies.

The RBI’s SBR framework is part of a broader effort to enhance oversight of large financial institutions.

Major players such as LIC Housing Finance, Bajaj Finance, and L&T Finance have already made significant strides toward compliance with the SBR framework.

Support for IPO

However, the Shapoorji Pallonji Group which owns 18 per cent stake in Tata Sons, has been a strong supporter for an IPO.

At the recent annual general meeting of Tata Sons, the Shapoorji Pallonji Group emphasised that the listing of Tata Sons could unlock significant value, enhance governance, improve market liquidity, and increase access to capital. Analysts estimate that even a modest 5 per cent stake sale could raise over ₹55,000 crore, substantially boosting the company’s financial position and market visibility.

As the deadline looms, analysts feel that the controversy surrounding Tata Sons’ public listing remains a test for the RBI’s ability to enforce its regulatory agenda and uphold governance standards in the financial sector.

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