Tata Group stocks rally; Tata Chemicals soars 20 per cent after RBI decision on listing

Several Tata Group stocks gained on Tuesday on the possibility of the holding company Tata Sons getting listed on the stock market after reports on the Reserve Bank of India RBI rejecting Tata Sons application to surrender its core investment company registration according to news agency PTIOn the Bombay Stock Exchange BSE shares of Tata Chemicals soared 20 per cent while Tata Investment Corporation gained 1524 per cent Tata Motors Passenger Vehicles traded 589 per cent higher and TCS surged 547 per centTata Elxsi jumped 428 per cent Tata Power climbed 341 per cent Tata Communications rallied 321 per cent Tata Steel advanced 196 per cent and Tata Consumer Products inched up 172 per cent on the BSEOn Saturday PTI citing sources said the rejection was conveyed in a letter received by Tata Sons company secretary and chief financial officer thus closing out an application the company filed in March 2024 seeking to deregister as a nonbanking financial companyTata Sons sought to deregisterTata Sons the holding company of the USD 180billion revenue Tata conglomerate had sought deregistration in March 2024 after becoming debt free to avoid the listing requirement that applies to upper layer non banking financial companies NBFCs However the regulators latest decision means the holding company faces the mandatory listingDespite being a CIC Tata Sons had exposure to bank debt as it had borrowed money on behalf of its group companies as some were relatively new or did not have strong enough credit profiles to borrow cheaply on their own At the request of the banks it also acted as a guarantor for some of the subsidiaries while charging them a fee Because of these interconnected financial arrangements the RBI wanted greater regulatory oversight and transparency by treating Tata Sons as a Core Investment Company CIC under the NBFC frameworkRBI had classified Tata Sons as an upper layer NBFCThe RBI had classified Tata Sons as an upper layer NBFC in September 2022 with such entities required to list within three years with the original deadline of September 30 2025 for Tata Sons However Tata Sons wanted to remain a privately held company and had sought to exit the NBFC framework before that deadline by repaying more than Rs 21000 crore of debt in 2024The company had applied to surrender its registration seeking to operate as an unregulated holding company but the regulator kept the application pending and continued to include Tata Sons in its upper layer NBFC listsThe RBI introduced a scalebased regulatory framework for NBFCs in October 2021 sorting lenders into base middle upper and top layers with progressively stricter oversight The revised RBI norms effective June 2026 said any NBFC with assets of Rs 1 lakh crore or more sits in the upper layer and Tata Sons with its standalone assets of over Rs 2 lakh crore as of March 2026 falls under this bracketWith inputs from PTI