RBI governor reiterates listing requirement for top NBFCs as focus intensifies on Tata Sons

"As long as it's an NBFC within our definition. It's a core investment company (CIC) and has access to (public) funds ....(then) it's required to be registered, and if it is in the upper layer, then it is required to list," RBI chief Sanjay Malhotra said at broadcaster NDTV's World Summit conference.

Under RBI rules, non-banking financial companies classified in the upper layer - a category comprising the largest and among the most systemically important players in the sector - including core investment companies, are required to list on the stock market.

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One of India's largest conglomerates-the Tata Group-is grappling with internal divisions over whether its holding company, Tata Sons, should list on the stock market, with its board favouring a listing to comply with RBI rules while its controlling shareholder, Tata Trusts, explores alternatives to avoid it.

Last month, the RBI rejected Tata Sons' application to deregister as a non-banking financial company, keeping the company under pressure to comply with the listing requirement.

Speaking on broader policy, Malhotra said monetary policy is not generally used as a tool for maintaining financial stability, but added that there may be times it can be used for that purpose.

His comments come as the rupee faces pressure, raising the question of how monetary policy considerations intersect with the RBI's efforts to support the currency.

Malhotra added that any decision to use monetary policy to address financial stability concerns would be deliberated by the Monetary Policy Committee.