RBI files caveat after rejecting Tata Sons bid to avoid listing, source says

MUMBAI: The Reserve Bank of India (RBI) — the country’s central bank and banking regulator — has pre-emptively approached the courts seeking to be heard in any matter filed related to the listing of Tata Sons, a source directly familiar with the matter said.

The move follows the RBI’s rejection of Tata Sons’ application to deregister as a non-banking financial company (NBFC), a decision that pushes the holding company closer to a stock market listing. Reuters reported on Saturday that the RBI had communicated its decision in a letter to Tata Sons.

Factions within the group have resisted a listing, according to local media reports.

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The RBI has filed what in legal parlance is known as a ‘caveat’ in the Bombay High Court which will allow the central bank to be heard if a petitioner challenges its decision or seeks a stay, the source said, declining to be identified as they are not authorised to speak to the media.

This was done “as a routine measure to ensure it is heard in any proceedings challenging the decision or seeking a stay,” the source said.

RBI and Tata Sons did not reply to emailed requests for comment from Reuters.

Tata Sons, the century-old holding company of the Tata Group, has businesses including Tata Consultancy Services , Tata Motors, Tata Steel and Air India.

Shares of group companies rose on Tuesday.

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It falls under the RBI’s purview as it is currently registered as a core investment company.

Under RBI rules, all non-bank financiers including core investment companies with assets exceeding 1 trillion rupees ($10.45 billion) or access to public funds are required to list.

Tata Sons reported standalone assets of 1.75 trillion rupees as of March 2025, the latest data available.