RBI review: Tata Sons seeks relief from IPO, will have to be listed in the stock market before September

New Delhi| Tata Sons has sought relief from RBI from launching IPO. He is considering this application. In its reply under Right to Information (RTI), RBI said that Tata Sons has voluntarily returned its registration certificate. If RBI accepts this application then Tata Sons will be exempted from bringing the issue. If Tata Sons gets the exemption, it may deprive crores of investors from participating in it.

Tata Sons has also repaid a debt of 20,000 crore to get exemption from IPO rules. Tata Sons has applied to drop major investment company (CIC) registration on March 28 this year, the RBI said in response to an RTI on November 14. In fact, RBI placed 15 large companies in the upper category under scale based regulation (SBR) in 2022. All of them were mandated to be listed on the stock market before September, 2025. Out of this, 11 companies have already been listed.

Experts say it takes at least 6-8 months to launch an IPO. On this basis, Tata Sons now has less time. Even if it gets approval now, it will take 8 months to prepare. The SBR framework imposes strict governance and transparency norms on systemically important non-banking financial companies (NBFCs).

Analysts say that if Tata Sons is exempted from listing, other upper class companies may also seek relief. The involvement of Tata Trust Vice Chairman Venu Srinivasan has further complicated the situation. Srinivasan also serves on the Central Board of Directors of RBI. This dual role is a matter of direct conflict of interest.

Merchant bankers believe Tata Sons could bring in the biggest issue ever which could be worth Rs 55,000 crore. The second largest shareholder in Tata Sons is Shapurji Pallonji.