Suryaa National Desk: Surya Corporate & Economy Desk, New Delhi: On the regulation of holding companies, core investment companies (CIC) of the country's leading business giants, India... Surya Corporate & Economy Desk, New Delhi: Reserve Bank of India (RBI) Governor Sanjay Malhotra has given a key explanation on the regulation of holding companies and core investment companies (CIC) of leading business giants in the country. Participating in the 'NDTV World Summit 2026' held in New Delhi, he clearly revealed the RBI guidelines on why large CICs like Tata Sons must be registered with the Central Bank and why they must be listed in the stock market as per the rules. Systemic threats and protection of public funds are the main reason: Firms like Tata Sons will be the focal point of all the group companies and raise huge funds, the RBI governor said.
He explained that these holding companies gain leverage based on the balance sheets of group companies, thereby exposing public funds through corporate bonds, banks and other channels to systemic risk. It has been clarified that every NBFC, Core Investment Company which is directly or indirectly connected with public funds has to come under the Central Bank norms and registration is mandatory. Upper Layer NBFC Norms – Listing Indispensability: The governor ruled that any entity that is an NBFC or a CIC as defined by the RBI and has access to funds must comply with the norms. He reminded that especially the huge NBFCs which are in the list of 'Upper Layer' in the RBI classification will definitely have to go for public listing.
It has been explained that only organizations which have no direct or indirect connection with public funds are exempted from these registration rules. Background of Tata Sons: In the wake of RBI's rejection of Tata Sons' earlier application to surrender its NBFC license and continue as a private unlisted company, Governor Sanjay Malhotra's comments have gained a lot of attention in corporate circles. The Central Bank has once again made it clear that as per the RBI scale-based regulatory norms, all top-tier companies of specified size will have to follow the market listing process for transparency and corporate governance.