Two MPs Write To RBI Over Tata Sons' NBFC Status

Two more MPs have written to the RBI, expressing concern over Tata Sons' attempt to deregister as a core investment company.

In separate letters addressed to RBI Governor Sanjay Malhotra, Porika Balram Naik, a Congress MP from Telangana, and Tangella Uday Srinivas, MP from Kakinada, have said that Tata Sons’ move to surrender its Certificate of Registration dated March 28, 2024, is an attempt to bypass the RBI’s requirement for upper layer NBFCs to list by September 2025.

The MPs said 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 bone of contention is the potential move by Tata Sons to circumvent mandatory listing requirements for large non-banking financial companies classified under the upper layer category by the Reserve Bank of India.

Earlier, a Janata Dal (United) MP, Kaushalendra Kumar, had written to Finance Minister Nirmala Sitharaman on the issue.