Two Members of Parliament have written to the Reserve Bank of India Governor Sanjay Malhotra raising concerns over Tata Sons’ alleged attempt to deregister as a Core Investment Company. This is fourth occasion when a politician wrote to either RBI or Finance Ministry over the issue. Earlier, another MP and a local politician wrote to Finance Ministry and RBI respectively over the issue.
In the letter to the RBI Governor, the MPs argued that the attempt is aimed at circumventing mandatory listing requirements for large Non-Banking Financial Companies classified under the Upper Layer category by the Reserve Bank of India, reported NDTV Profit. In a separate letters to RBI Governor Sanjay Malhotra, the MPs also highlighted a potential conflict of interest involving Venu Srinivasan, who sits on the boards of both Tata Sons and the RBI, warning that his dual role could undermine public trust in the regulatory process.
The MPs in question—Porika Balram Naik, a former Union Minister and Congress MP from Telangana, and Tangella Uday Srinivas, MP from Kakinada, Andhra Pradesh—have urged the RBI to ensure regulatory integrity in the matter. They argue that Tata Sons’ move to surrender its Certificate of Registration dated 28 March 2024 is an attempt to bypass the RBI’s requirement for Upper Layer NBFCs to list by September 2025.
Earlier, Janata Dal (United) MP Kaushalendra Kumar has sought the intervention of Finance Minister Nirmala Sitharaman on the issue.
Porika Balram Naik emphasised that over one crore public shareholders in Tata-listed companies, including Tata Steel, Tata Motors, Indian Hotels, Tata Consumer, and Tata Chemicals, could be adversely affected if Tata Sons is allowed to sidestep the listing mandate.
Meanwhile, Tangella Uday Srinivas stressed that under Prime Minister Narendra Modi’s leadership, India is witnessing a financial transformation focused on transparency and accountability. Granting Tata Sons an exception from the RBI’s Scale-Based Regulatory Framework, he warned, would undermine these reforms and set a dangerous precedent for other corporate entities.
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