RBI Clasifies Tata Sons, 16 Others As Large NBFCs

Mumbai: The Reserve Bank of India on Thursday released a list of 17 large NBFCs that included Tata Sons, but said the status of the conglomerate will depend on the outcome of its de-registration application.

The list also includes four state-owned non-banking financial companies (NBFCs) in the ‘Upper Layer’ category. These are REC, PFC, IRFC and HUDCO.

The other large NBFCs in the list include Bajaj Finance Limited, Shriram Finance and Tata Capital.

NBFCs classified in the Upper Layer remain subject to enhanced regulatory requirements for at least five years and are required to list their shares on a stock exchange within three years of identification.

Regarding Tata Sons, RBI said its inclusion “in the list of NBFC-UL is without prejudice to the outcome of its application for de-registration, which is under examination”.

The central bank’s framework categorises NBFCs in Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer (NBFC-TL) and provides the criteria to identify the NBFCs in the Upper Layer.

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