InGovern, a proxy advisory firm, has urged the RBI to insist Tata Sons to move towards a listed structure in a time-bound manner and become regulatory compliant as it remains the only CIC (Core Investment Company) that has been non-compliant with the RBI regulations.
RBI has neither accepted nor rejected Tata Sons’ deregistration application, but has indicated in many ways that large CICs should be listed.
If Tata Sons remains systemically relevant for regulatory purposes, there is a strong argument that it should also be systemically transparent in governance terms, said InGovern.
InGovern argued that if the RBI continues to treat Tata Sons as significant enough to remain under the upper-layer NBFC framework, then disclosure expectations should also rise accordingly. The report said “systemic importance” should be matched with “systemic transparency”.
Holding co influence
