Two more MPs write letter to RBI over Tata Sons' listing issue

Two Members of Parliament (MPs) have raised concerns over Tata Sons’ alleged attempt to deregister as a Core Investment Company (CIC). In a letter to the new Reserve Bank of India (RBI) Governor Sanjay Malhotra, the MPs argue that this move could potentially circumvent mandatory listing requirements for large Non-Banking Financial Companies (NBFCs) under the Upper Layer category.

This marks the fourth instance of politicians addressing the issue with either the RBI or the Finance Ministry. Previously, another MP and a local politician wrote to the Finance Ministry and the RBI, respectively, about the same matter.

The MPs, Porika Balram Naik, a former Union Minister and Congress MP from Telangana, and Tangella Uday Srinivas, MP from Kakinada, Andhra Pradesh, have expressed concern about potential conflicts of interest surrounding the issue. In their separate letters to the RBI Governor, the MPs highlighted the dual role of Venu Srinivasan, who sits on the boards of both Tata Sons and the RBI. They cautioned that this overlap could undermine public trust in the regulatory process.


The MPs have urged the RBI to ensure regulatory integrity in this matter, particularly regarding Tata Sons’ move to surrender its Certificate of Registration dated 28 March 2024. This, they argue, is an attempt to bypass the RBI’s requirement for Upper Layer NBFCs to list by September 2025.

Porika Balram Naik raised concerns about the potential impact on over one crore public shareholders in Tata-listed companies, including Tata Steel, Tata Motors, Indian Hotels, Tata Consumer, and Tata Chemicals. The MP warned that allowing Tata Sons to sidestep the listing mandate could adversely affect these shareholders.

Tangella Uday Srinivas warned that granting Tata Sons an exception from the RBI’s Scale-Based Regulatory Framework would set a dangerous precedent for other corporate entities.