MUMBAI: RBI governor Sanjay Malhotra indicated that Tata Sons continues to be on the list of upper layer NBFCs, even as the central bank is yet to release its updated classification based on revised principle-based criteria. Malhotra said the identification of upper layer NBFCs is now principle-based and entities that meet the criteria are automatically included, with size remaining the key determinant. “It is now principle-based, so as per those principles, everyone knows what the list is and can understand it. I think the list will be out very soon — we have changed the rules, so [we will] reissue the list,” he said.The classification has gained attention after Tata Sons sought to de-register as an NBFC to avoid mandatory listing requirements, while the Shapoorji Pallonji group, the largest shareholder, has pushed for a listing. The RBI has not yet made its periodic disclosure of NBFCs in the upper layer. One of the norms for upper layer NBFCs is compulsory listing. Tata Sons had earlier repaid all its debts to avoid mandatory listing and stay private.Malhotra said entities above a defined threshold are automatically classified into the upper layer, and market participants are aware of NBFCs falling into each category. An entity that has applied for surrender of its registration certification will remain on the list until a revised list is issued.
