RBI Reaffirms Listing Rules for Top NBFCs
Reserve Bank of India (RBI) Governor Sanjay Malhotra has reiterated that non-banking financial companies (NBFCs) classified in the upper layer must be listed on the stock market if they meet the regulatory criteria. Speaking at NDTV’s World Summit, he said core investment companies that fall within the RBI’s definition and have access to public funds are required to register, with upper-layer entities also required to list.
The statement comes amid growing pressure on Tata Sons, the holding company of the Tata Group, over its potential stock market listing. While the Tata Sons board reportedly favours listing to comply with RBI regulations, Tata Trusts is exploring alternatives. Last month, the RBI rejected Tata Sons’ application to deregister as an NBFC, keeping the listing issue unresolved.
Malhotra also discussed the broader role of monetary policy in maintaining financial stability as the Indian rupee faces pressure. He noted that monetary policy is not generally used as a financial stability tool, although exceptional circumstances may require it. Any such decision, he said, would be deliberated by the RBI’s Monetary Policy Committee.
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