Sources within the group said they expect a definite answer from the RBI on the listing issue. While including Tata Sons in the upper layer NBFC list for 2026-27 released last week, the RBI maintained that the company’s request for deregistration is under examination.
While Tata Sons had opposed listing earlier, Chandrasekaran’s latest stand on the matter is not in the public domain. In fact, various stakeholders of Tata Sons hold different views on the matter, complicating things. “The exit of Tata Sons Chairman N Chandrasekaran is unlikely to have any bearing on the fate of Tata Sons as an upper-layer NBFC, as the decision ultimately rests with the Reserve Bank of India (RBI),” said Abizer Diwanji, founder, NeoStrat Advisors LLP.
Chandrasekaran said he would not seek another term as chairman of Tata Sons when his current tenure ends in February 2027.
“The listing or non-listing of Tata Sons is not within the control of Chandrasekaran or the board, because it is the regulator that is pressing for the listing. Tata Sons’ application has been pending with the RBI, which has not decided one way or the other. Since the matter is outside Chandrasekaran’s control, holding him solely responsible for it would be unfair,” said Shriram Subramanian, founder and managing director, InGovern Research Services.
Tata Sons has featured in the RBI’s NBFC-Upper Layer list as a core investment company (CIC) since 2022, when the central bank introduced the scale-based regulatory framework for NBFCs. The previous list, published in January 2025, had also said that Tata Sons’ de-registration request was under consideration. Under the framework, an NBFC classified in the upper layer is required to list within three years. Tata Sons’ listing deadline expired in September 2025.
This year, the RBI tweaked the criteria for classification as an upper-layer NBFC. The revised norms, which came into effect in June, stipulate that NBFCs with assets of ₹1 trillion or more would qualify for the upper layer. Such entities are subject to enhanced regulatory requirements and are required to list on stock exchanges within three years. Tata Sons’ standalone assets are over ₹1.75 trillion.
Tata Sons approached the RBI in 2024 seeking de-registration after becoming debt-free, a move that would allow it to remain a privately held, unlisted company. The application has remained pending.
“The RBI is currently examining Tata Sons’ application for de-registration, and its decision on whether the company should continue to be classified as an NBFC will determine its status. The issue is whether Tata Sons should be classified as an NBFC at all,” Diwanji said. If the RBI approves the de-registration application, the question of complying with upper-layer requirements, including mandatory listing, would cease to arise. If the application is rejected, the existing NBFC regulations would continue to apply, he said.
Tata Sons’ proposed listing has remained under suspense since the RBI amended the upper-layer NBFC regulations. A second amendment issued in late June briefly raised expectations of relief after omitting an explanation on “indirect receipt of public funds” that had been introduced through the April amendment.
The RBI, however, reinstated the explanation in the updated Directions effective July 1, retaining indirect access to public funds through group firms and associates as a relevant criterion.
 "Tata Sons' proposed listing has remained under suspense since the RBI amended the upper-layer NBFC norms. The company approached the RBI in 2024 seeking de-registration after becoming debt-free, a move that would allow it to remain a privately held,")