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The Reserve Bank of India last week had rejected Tata Sons’ application to surrender its registration as a Core Investment Company (CIC), keeping the Tata Group holding company within the regulatory framework applicable to Upper Layer NBFCs. Tata Sons had filed the application in March 2024, after repaying Rs 21,813 crore of debt in FY24, in a move aimed at exiting the regulatory framework and potentially avoiding the need/requirement to list on stock exchanges. Following this rejection, the RBI has also filed a caveat in the Bombay High Court. The caveat seeks to ensure that the RBI is heard before any order is passed if Tata Sons challenges the RBI’s decision.