The New Indian Express ·
After 30 months, RBI rejects Tata Sons plea to cancel its NBFC licence
MUMBAI: In a major setback for Noel Tata, the chairman of the Tata Trusts that owns more than two-thirds of Tata Sons, the Reserve Bank is learnt to have rejected its application seeking to cancel the shadow banking licence, after 30 months of filing it, well in a landscape where the regulatory goalposts keep changing like hot sand dunes!
Way back in March 2024, Tata Sons had applied to RBI to cancel its licence as a registered non-banking core investment firm. That application was based on the then prevailing regulatory requirement of not having any exposure to public funds/debt by way of public deposits.
In a letter to Saurabh Agarwal, the chief financial officer of Tata Sons, the RBI said, “please refer to your letter of application dated March 28, 2024 that stated that Tata Sons Pvt Ltd, would fulfil the criteria prescribed for being classified as an unregistered core investment company, and your several subsequent correspondences on the subject.”
