Hinting that Tata Sons may have to go for listing on the stock exchanges, Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said non-banking finance companies (NBFCs) or core investment companies (CICs) like Tata Sons and others are required to

be registered with the RBI because of the risks involved, including systemic risks.

“And if it is in the upper layer (of the NBFC category), then it is required to list,” he said.

The RBI had recently classified Tata Sons as a CIC within the NBFC-Upper layer framework. These NBFCs and CICs are required to go for listing as per the RBI norms.

Any entity falling within the RBI’s definition of an NBFC or a CIC must be registered with the central bank if it has direct or indirect access to public funds, he said while speaking at the NDTV World Summit in New Delhi.

“They sit on top of group companies where they leverage funds… they can leverage funds, they do leverage funds, and they use the balance sheets of the group companies to return those funds,”…