Business Standard

Thursday, January 30, 2025 | 07:44 AM ISTEN Hindi

Notification Icon
userprofile IconSearch

Tata Sons' de-registration application under consideration, says RBI

On Thursday, the regulator released the list of NBFC-UL for 2024-25 in which 15 entities are named, same as financial year 2023-24. No new NBFCs were included in the list for FY25

Tata

Tata Sons is the principal investment holding company and promoter of its Tata group companies. (Photo: Shutterstock)

BS Reporter Mumbai

Listen to This Article

Salt-to-software conglomerate Tata Sons continues to be under enhanced regulatory requirements as the Reserve Bank of India has included the company among the upper layer non-banking financial company (NBFC-UL) for the second consecutive year.
 
On Thursday, the regulator released the list of NBFC-UL for 2024-25 in which 15 entities are named, same as financial year 2023-24. No new NBFCs were included in the list for FY25.
 
“…inclusion of Tata Sons Private Limited in the list of NBFC-UL is without prejudice to the outcome of its application for de-registration, which is under examination,” RBI said in a press release.
 
 
Tata Sons is the principal investment holding company and promoter of its Tata group companies. Tata Sons is classified as a core investment company, and it is the only CIC among NBFC-UL. Natarajan Chandrasekaran is chairman of the Board at Tata Sons.
 
Tata Capital is the other group company which continues to be in the category of NBFC-UL.
 
Last year, TMF Business Services Limited (formerly Tata Motors Finance Limited) was not included in the list of NBFC-UL due to its ongoing business reorganisation even if the company qualified for identification as NBFC-UL as per scoring methodology.
 
For 2024-25, Piramal Enterprises Limited was not included in the list of NBFC-UL in the current review due to ongoing reorganisation in the business group, even if the NBFC was qualified for identification as NBFC-UL as per scoring methodology, RBI said. Piramal Capital & Housing Finance Limited is among the NBFC-UL.
 
In terms of the scale based regulation framework, once an NBFC is classified as NBFC-UL, it is subject to enhanced regulatory requirement, at least for a period of five years from its classification in the layer, even if it does not meet the parametric criteria in the subsequent years.
 
The revised framework for scale based regulation was issued in October 2021.
 
The framework categorises NBFCs in Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer (NBFC-TL) and gives the methodology to identify the NBFCs in the Upper Layer as per their asset size and scoring methodology. 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 16 2025 | 4:36 PM IST

Explore News