Tata Group seeks RBI waiver from listing NBFC

Rate this post

Tata Group has sought a formal waiver from the central bank to avoid listing Tata Sons, its holding company and non-banking finance firm, on stock exchanges, Bloomberg News reported on Friday, citing people familiar with the matter.

In seeking the waiver, Tata told the central bank it has used the proceeds from selling $1.1 billion worth of shares in Tata Consultancy Services last month to pay off loans to foreign and local lenders, the news agency reported.

Tata Sons’ borrowings stood at ₹202.74 billion ($2.43 billion) as of March 31, 2023. If it is able to lower its debt to below 1 billion rupees, it could cease to be classified as an upper-layer NBFC by the RBI and avoid listing.

Tata Group and the RBI did not immediately reply to Reuters’ requests for comment.

Tata Sons must be listed on or before September 2025 to adhere to an RBI regulation that large non-banking finance companies (NBFCs) list their shares within three years.

Source link

Visit www.cagurujiclasses.com for practical courses

Pooja Gupta

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

Disclaimer:- The opinions presented are exclusively those of the author and CA Guruji Classes. The material in this piece is intended purely for informational purposes and for individual, non-commercial consumption. It does not constitute expert guidance or an endorsement by any organization. The author, the organization, and its associates are not liable for any form of loss or harm resulting from the information in this article, nor for any decisions made based on it. Furthermore, no segment of this article or newsletter should be employed for any intention unless granted in written form, and we maintain the legal right to address any unauthorized utilization of our article or newsletter.

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

Leave a Comment