RBI files caveat in Bombay HC over Tata Sons listing mandate

The Reserve Bank of India (RBI) has filed a caveat petition in the Bombay High Court in connection with the mandated listing of Tata Sons, according to media reports, seeking to ensure that it gets an opportunity to be heard before the court passes any order if a petition is filed in the matter. 

Fortune India has sought a response from the RBI. The copy will be updated if the central bank’s spokesperson responds. 

RBI rejects Tata Sons’ CIC surrender application 

The development follows the RBI’s rejection of Tata Sons’ application to surrender its registration as a core investment company (CIC), potentially clearing the way for a mandatory stock market listing of the Tata Group’s holding company. 

In a letter dated September 11, 2026, the central bank informed Tata Sons that its application for exemption from the unregistered CIC category could not be accepted. 

After examining various aspects of Tata Sons’ application for voluntary surrender of its CIC registration, the RBI concluded that the request “cannot be acceded to”, according to a source who had seen the letter. 

The decision assumes significance as Tata Sons has remained unlisted despite an earlier RBI directive requiring it to list its shares within a specified timeframe. 

Why is Tata Sons required to list? 

In September 2022, the RBI classified Tata Sons as an upper-layer non-banking financial company (NBFC) under its scale-based regulatory framework. As part of the classification, the central bank directed the company to list its shares within three years. 

The deadline expired in September 2025, but Tata Sons did not undertake a public listing. 

In 2024, the company applied to the RBI to surrender its CIC certificate of registration after becoming debt-free. The application was aimed at securing an exemption from the regulatory requirements applicable to an upper-layer NBFC, including the listing mandate. 

The RBI’s decision on the application had remained pending until the latest rejection. 

Earlier, on August 6, the RBI retained Tata Sons in its latest list of upper-layer NBFCs (NBFC-ULs), while stating that the company’s application to surrender its CIC registration was still under examination. The wording had left open the possibility of Tata Sons making another attempt to persuade the regulator to allow it to exit the framework. 

Noel Tata’s concerns over listing 

Tata Trusts chairman Noel Tata has argued that Tata Sons is not an NBFC and that the dividends received from the holding company serve as a cash resource for the philanthropic activities of the Trusts. He has also raised concerns that a public listing could make the process of transferring dividends to the Trusts more difficult. 

The listing mandate has also reportedly been a key issue in the differences between Noel Tata and N. Chandrasekaran. Chandrasekaran has decided not to pursue a third term as chairman, leaving the management to decide on a new chairman.