Business Standard ·
RBI NBFC FAQs offer clarity on rules relevant to Tata Sons' de-registration
RBI's latest NBFC FAQs clarify definitions of CICs, principal business and public funds, shedding light on regulatory issues relevant to Tata Sons' failed deregistration bid
Days after rejecting Tata Sons’ request for exemption from the core investment company (CIC) category — a move that effectively mandates a public listing for the salt-to-software giant — the Reserve Bank of India (RBI) issued new non-banking financial company (NBFC) FAQs. The guidelines shed light on the regulatory principles driving the central bank’s refusal to let Tata Sons deregister as an NBFC.
RBI, in a letter to Tata Sons, said that after examining all aspects of its application for voluntary surrender of the CIC category, it found that “it cannot be acceded to”.
