Why the new framework for NBFC categorisation will be closely eyed by Tata Sons
Tata Sons has been classified as a core investment company by RBI and, under existing guidelines, should have listed by September 30, 2025. RBI has not issued any clarification on that front so far
- Apr 9, 2026,
- Updated Apr 9, 2026 11:34 AM IST
The Reserve Bank of India (RBI) is set to soon come out with a new scale-based framework for the categorisation of non-banking financial services companies. The move assumes importance given the uncertainty that still surrounds the listing of Tata Sons.
NBFCs are regulated by RBI under the scale-based regulation framework, where differential regulations are applied proportionately to scale and systemic importance of NBFCs.
“We are coming up with a new framework for categorisation of NBFCs. Very soon, we should be doing so,” RBI Governor Sanjay Malhotra told reporters on Wednesday, without giving any more or specific details.
As of March 2025-end, 15 NBFCs were identified for the upper layer, which are subject to more stringent regulations than those in the middle and base layers.
“The scale-based regulation framework for NBFCs envisages a differential regulatory treatment to NBFCs not availing public funds and not having a customer interface. Towards this initiative, a review of the extant regulations is underway,” RBI said in the report on Trend and Progress of Banking in India that was released in December 2025.
Tata Sons has so far been classified as a core investment company and must list on stock exchanges under existing guidelines. However, that deadline passed on September 30, 2025, and there is still no clarification from the RBI on that front yet.
In October 2025, Malhotra stated that any entity registered until it was cancelled would continue to do business, without naming any specific entity.
The clarification will be crucial for Tata Sons, the holding company of the salt-to-software Tata conglomerate. Until recently, it was widely believed that the Tata Sons board, as well as its majority shareholder, the Tata Trusts, were unanimous in their desire for Tata Sons to remain private. To that effect, it had sought a de-registration as an upper-layer NBFC.
One group that would ideally want Tata Sons listed is the Shapoorji Pallonji Group. The group holds more than 18 per cent stake in Tata Sons. The group has interests across real estate, construction, energy and infrastructure, among other things. A potential listing would open the doors for Shapoorji Pallonji Group to sell its stake and raise much-needed funds for its various businesses and pay off its debts.
The debate whether to list or not was reignited after Venu Srinivasan, Tata Trusts Vice-Chairman, came out in support of a listing. Srinivasan has told a financial daily that a public listing would not only unlock value for minority shareholders, providing the Shapoorji Pallonji Group an exit route, but also equip Tata Sons with capital to sustain its growth trajectory.
The listing of NBFCs registered with RBI as of December 31, 2025, still includes Tata Sons as an upper-layer NBFC. All eyes will now be on the new framework on NBFC categorisation, which the RBI will bring out soon, and that could hopefully make it clear if Tata Sons will have to list or not.
The Reserve Bank of India (RBI) is set to soon come out with a new scale-based framework for the categorisation of non-banking financial services companies. The move assumes importance given the uncertainty that still surrounds the listing of Tata Sons.
NBFCs are regulated by RBI under the scale-based regulation framework, where differential regulations are applied proportionately to scale and systemic importance of NBFCs.
“We are coming up with a new framework for categorisation of NBFCs. Very soon, we should be doing so,” RBI Governor Sanjay Malhotra told reporters on Wednesday, without giving any more or specific details.
As of March 2025-end, 15 NBFCs were identified for the upper layer, which are subject to more stringent regulations than those in the middle and base layers.
“The scale-based regulation framework for NBFCs envisages a differential regulatory treatment to NBFCs not availing public funds and not having a customer interface. Towards this initiative, a review of the extant regulations is underway,” RBI said in the report on Trend and Progress of Banking in India that was released in December 2025.
Tata Sons has so far been classified as a core investment company and must list on stock exchanges under existing guidelines. However, that deadline passed on September 30, 2025, and there is still no clarification from the RBI on that front yet.
In October 2025, Malhotra stated that any entity registered until it was cancelled would continue to do business, without naming any specific entity.
The clarification will be crucial for Tata Sons, the holding company of the salt-to-software Tata conglomerate. Until recently, it was widely believed that the Tata Sons board, as well as its majority shareholder, the Tata Trusts, were unanimous in their desire for Tata Sons to remain private. To that effect, it had sought a de-registration as an upper-layer NBFC.
One group that would ideally want Tata Sons listed is the Shapoorji Pallonji Group. The group holds more than 18 per cent stake in Tata Sons. The group has interests across real estate, construction, energy and infrastructure, among other things. A potential listing would open the doors for Shapoorji Pallonji Group to sell its stake and raise much-needed funds for its various businesses and pay off its debts.
The debate whether to list or not was reignited after Venu Srinivasan, Tata Trusts Vice-Chairman, came out in support of a listing. Srinivasan has told a financial daily that a public listing would not only unlock value for minority shareholders, providing the Shapoorji Pallonji Group an exit route, but also equip Tata Sons with capital to sustain its growth trajectory.
The listing of NBFCs registered with RBI as of December 31, 2025, still includes Tata Sons as an upper-layer NBFC. All eyes will now be on the new framework on NBFC categorisation, which the RBI will bring out soon, and that could hopefully make it clear if Tata Sons will have to list or not.