Business EconomyPosted at: Sep 16 2026 9:24PM


Tata Trusts exploring legal options, likely to challenge RBI’s position

By Bobby Anthony
Mumbai, Sep 16 (UNI) Tata Trusts which controls 66% of the Tata Group holding company Tata Sons, which has been classified by the Reserve Bank of India (RBI) as an Upper Layer non-banking finance company (NBFC), is keen to avoid listing Tata Sons on the stock exchange, and is hence exploring all legal options to avoid a listing, sources said on Wednesday.
The development comes after the RBI filed a caveat petition in the Bombay High Court on Tuesday regarding the rejection of Tata Sons’ application to voluntarily surrender its Core Investment Company (CIC) registration.
According to sources, Tata Trusts wants to explore all options, including asking the RBI to reconsider and clarify its decision directing it to list on the stock exchange, before Tata Trusts decides to take legal recourse.
In fact, Tata Trusts Chairman Noel Tata has already roped in the legal firm Cyril Amarchand Mangaldas (CAM), in case Tata Trusts is left with no other option but to challenge the RBI's legal position, which might potentially lead to a protracted legal battle involving the RBI and Tata Trusts.
Meanwhile, the Tata Trusts case is being compared to a similar case involving the Dilip Shanghvi-controlled Shanghvi Finance which was allowed to surrender its licence on February 9, 2023, after paying off its Rs 879 crore debt.
Sources said that the RBI did not allow a similar offer by Tata Sons to surrender its Core Investment Company (CIC) registration after Tata Sons applied to do so in March 2024, while the RBI allowed Shanghvi Finance to surrender its licence on May 17, 2023.
However, a former central banker pointed out that the RBI would look at Tata Sons and Shanghvi Finance differently, since Shanghvi Finance was an investment and credit company (ICC), while Tata Sons is a core investment company (CIC), though both the NBFCs are classified as “upper layer non-banking finance companies”.
In the case of Tata Trusts, the RBI wrote a one-page letter to Tata Sons Chief Financial Officer on September 11, after two years of silence, that the request by Tata Sons to surrender the registration “cannot be acceded to”.
The RBI stated that the decision was made after “examining all the relevant factors”, without specifying any reasons.
That would mean that Tata Sons would have to list on the stock exchange unless the RBI reconsiders its decision or if Tata Sons wins a legal challenge, sources said.
Sources said that if a legal battle ensues, then RBI might have to disclose why exactly it wants Tata Sons to list on the stock exchange.
Sources said that based on past interpretations, RBI suggests that even equity investments from companies sourcing public debt would qualify an investee company as a Core Investment Company (CIC).
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Tags: #Tata Trusts exploring legal options# likely to challenge RBI’s position
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