RBI Paves Way For Tata Capital Listing
RBI has classified Tata Capital and its parent company Tata Sons as NBFCs with an upper layer distinction, requiring both companies to go public by September 2025.
The Reserve Bank of India paved the way for Tata Capital Ltd.’s listing as it issued a certificate of registration which will convert the company to a non banking finance-investment and credit company from NBFC-core investment company, the lender informed exchanges.
Tata Capital was registered with the RBI as an NBFC-CIC. As the merger between Tata Capital Financial Services Ltd., Tata Cleantech Capital Ltd. into Tata Capital Ltd. has come into force, the RBI has approved the company's application to convert itself into an NBFC-ICC.
In the interim of approval of the application, the company was operating as an NBFC-ICC and was complying with the guidelines applicable to an NBFC-ICC, the exchange filing said.
This has come as last year the central bank classified Tata Capital and its parent company Tata Sons as NBFCs with an upper layer distinction, requiring both companies to go public by September 2025.
In its scale based regulation last year, the RBI had also said that TMF Business Services Ltd., previously known as Tata Motors Finance Ltd., was not included in the list of upper layer NBFCs due to its ongoing business reorganisation.
In June, the board of Tata Motors Ltd., Tata Capital and Tata Motors Finance Ltd approved a merger of TMFL with TCL, paving the way for an initial public offering.
As consideration for the merger, TCL will issue its equity shares to the shareholders of TMFL, resulting in TML effectively holding a 4.7% stake in the merged entity, the company had said.
