The RBI should formally reject the application of Tata Sons to deregister itself as a Systemically Important Core Investment Company (CIC) to avoid mandatory IPO listing requirements and direct the Tata holding company to pursue a listing in line with (UL) NBFC requirements by March 2027, InGovern Research services , a corporate governance advisory firm, has said.

The firm added that granting exceptions to a conglomerate of Tata Sons’ scale could set a precedent for regulatory arbitrage and weaken the financial oversight framework. It has questioned Tata Sons’ bid to surrender its registration as a systemically important core investment company, arguing that the application is no longer tenable under the current regulatory framework and should be formally rejected by the Reserve Bank of India.

In a report titled “Tata Sons’ Deregistration: A Case for Regulatory Finality”, the firm said the holding company’s March 2024 application is effectively “dead on arrival” following regulatory changes introduced in 2026.

The report says the evolving Scale-Based Regulation (SBR) framework, along with clarifications issued by the RBI on April 29, 2026, have removed the legal and procedural basis for Tata Sons to exit the regulatory ambit applicable to large non-banking financial entities.

Tata Sons’ move to repay over ₹20,000 crore in standalone debt and position itself as free of public funds does not hold under the regulator’s “look-through” approach, which considers indirect access to public capital through group companies, the report stated.The firm noted that cross-holdings by listed Tata group entities—such as Tata Motors and Tata Power—create a structural linkage to public funds, weakening claims of exemption.

Tata Sons continues to be classified as an “Upper Layer” NBFC, with assets exceeding Rs 1.75 lakh crore—well above the Rs1,000 crore threshold required for voluntary deregistration. It adds that the September 2025 deadline for such applications has passed, making the proposal time-barred.

InGovern said allowing Tata Sons to remain unlisted while controlling large listed entities would run counter to regulatory consistency. It cited examples such as L&T Finance Holdings and other NBFCs that restructured or listed to comply with RBI norms rather than seeking exemptions.The note also flags governance concerns, saying the private status of Tata Sons limits transparency, weakens oversight of related-party transactions and may disadvantage over 1.2 crore public shareholders in Tata group companies.

Shares of select Tata group companies moved sharply higher after Shapoorji Pallonji Mistry backed the case for listing Tata Sons, calling it a “necessary revolution” rather than a regulatory compulsion. Tata Chemicals rose as much as 8%, while Tata Investment Corporation gained around 6%, reflecting renewed investor interest in holding company and group-linked plays.

Mistry said a public listing would strengthen governance standards, improve transparency and enhance accountability within the Tata ecosystem. He also pushed back against concerns that listing could dilute the role of Tata Trusts, stating there is no evidence to suggest that a public listing would harm the interests of beneficiaries or weaken the trusts’ ability to fulfil their objectives.

The comments come at a time when the future structure of Tata Sons is under increasing scrutiny. The holding company sits at the apex of the Tata group and controls stakes in key listed entities such as TCS, Tata Motors and Tata Steel. With Tata Trusts owning around 66% and the SP Group holding a significant minority stake, any move towards listing has implications for ownership dynamics and valuation transparency across the group.

The listing talks gained ground after the RBI’s classification of Tata Sons as an upper-layer NBFC. Under the central bank’s scale-based regulations, such entities may be required to list, unless exempted. Tata Sons has sought relief from this classification, and the final outcome will depend on the RBI’s revised framework.

Analysts see a potential listing as a value-unlocking event, particularly for holding company stocks where underlying asset values are often discounted.

In a notable development, Venu Srinivasan earlier this week backed the idea of a listing, saying it would be inevitable if such a classification is applied. He noted that a public listing would provide an exit route for minority shareholders and equip Tata Sons with capital to support growth.

However, this view contrasts with an earlier resolution by Tata Trusts to retain Tata Sons as an unlisted entity, reflecting emerging differences within the group’s top leadership.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The sales drive by Florida-based Powerus – which announced a deal last month to bring aboard Eric Trump and Donald Trump Jr. – positions the company to potentially benefit from a war that their father began.

“These countries are under enormous pressure to buy from the sons of the president so he will do what they want,” said Richard Painter, a former chief White House ethics lawyer under President George W. Bush. “This is going to be the first family of a president to make a lot of money off war — a war he didn’t get the consent of Congress for.”

Powerus co-founder Brett Velicovich told The Associated Press that the company is making sales pitches that include drone demonstrations in several Gulf countries to show how its defensive drone interceptors could help them ward off Iranian attacks.

“Our team is doing many demos across the Middle East right now for our interceptors,” Velicovich said in an text exchange. “We have very incredible tech that can save lives.”

He declined to name the countries or give more details.

The Trump brothers’ deal with Powerus could give them sizable equity stakes. Their father, as commander in chief, launched the strikes with Israel against Iran over a month ago that began the war, the impetus for why these Gulf countries now need protection.

Powerus denied there were any conflicts when the Trump brothers’ stake was first announced. Velicovich emphasized its determination to help the U.S. catch up with Chinese and Russian drone makers and beat them.

“We are at war, my friend, we are in an arms race and America will lose if we don’t build fast,” said Velicovich, an Army veteran who had come under fire from the same Russian drones now being used by Iran. He added, “We should be thankful anyone is trying to invest in American manufacturing now. That idea transcends politics.”

The president’s oldest sons have expanded their business interests beyond hotels and golf courses since their father took office again. The companies they’ve invested in or been named advisers for — with equity stakes — run the gamut from cryptocurrency ventures to prediction markets to federal contractors making rocket parts and rare earth magnets.

This latest Trump venture has its sights on $1.1 billion set aside by the Pentagon to build up a U.S. manufacturing base for armed drones to fill a hole left when the Trump administration banned such imports from China.

The Trump Organization, where the two sons are executives, didn’t respond to a request for comment, but has dismissed claims of conflicts of interest in the past. The sons have said they didn’t get credit for their restraint in expanding their businesses in their father’s first term so have decided not to hold back much this time.

Asked about potential Powerus conflicts of interest specifically, Eric Trump sent AP a statement last month saying, “I am incredibly proud to invest in companies I believe in. Drones are clearly the wave of the future.”

Founded by U.S. Army Special Operations veterans about a year ago, Powerus makes drones for commercial uses, from spreading fertilizer to putting out forest fires. But it is bulking up fast to supply drones for military uses.

The company recently raised $60 million from investors and hopes to tap additional financing by doing a “reverse merger” with a Trump company listed on the Nasdaq stock exchange that owns a few golf courses in Florida. Such a merger allows a private business to quickly go public by taking over a company that already has publicly traded shares, shortening the process of filing paperwork and meeting various requirements of regular initial public offering.

Caleb Kasner and his brother Duncan Kasner move around a little differently than average kids.

The two brothers have Duchenne muscular dystrophy — a rare, inherited muscle-wasting disorder that has no cure.

“Caleb stopped walking in December of ’23, so a little over a year ago. Duncy stopped walking in April of ’24,” their mom, Sarah Kasner, said. “Eventually it just affects all parts of every muscle, heart and lungs included.”

Their journey with Duchenne started nearly six years ago when both boys were diagnosed within weeks of each other. 

“We all just kind of crumbled through the floor and cried because we didn’t even know what to expect,” Sarah Kasner said.

The 11- and 9-year-olds are both wheelchair-bound and require 24/7 care. 

In the last few months, Dan and Sarah Kasner’s home has undergone construction, adding an elevator and accessible bathroom. The modifications made the make their ever-changing lives easier.

“Understanding that nothing is ever going to get better, it’s only going to keep progressing. Figure out the way to stay strong and keep them smiling as long as we can,” Dan Kasner said.

Sarah Kasner says they have a huge support network that keeps them going amid the highs and lows.

“They both have cardiomyopathy, which is scar tissue in their heart,” Sarah Kasner said. “More than 50% of their heart is filled with that.”

There’s progress in the fight and a new gene therapy shows positive signs of slowing the disease’s progression. Unfortunately, it is not an option for the Kasner boys.

“Let’s not stop the fight because I’m not going to stop even when they pass. I know this is a curable, fixable disease,” Sarah Kasner said.

With a future unknown, the Kasners choose to love and live.

“It’s so cliche but just like living in the present moment with what we have,” Sarah Kasner said.

A huge resource for the Kasners is Cure Duchenne, a global nonprofit that works to fund research towards improving and extending the lives of everyone affected by the disorder.

The organization also hosts conventions each year where the family can connect with others families facing the same disease.

The Kasners share a lot of their journey online with their “Kasners Kick Duchenne” page.

For decades, Art Cashin, UBS’ director of floor operations at the New York Stock Exchange, would write a New Year’s poem to reflect back on the year’s events. With Cashin’s passing earlier this month, his sons, Arthur and Peter, sent this homage to their father:

Some Other Cashins’ Comments:  An Homage Presentation
December 30, 2024 

by Arthur Cashin III and Peter Cashin

In 2024,
Wall Street stopped in fear.
No more annual poems
without Arthur here?

My brother and I
said, “Let’s give this a try,”
but with one precondition,
there would be no AI!

Genetics or environment,
we share his same vice.
So, we joined our feeble minds,
while marinating some ice. 

Paris hosted the Olympics
and chose to begin,
by having the opening
float down the Seine.

A container ship took out
the Francis Scott Key.
The world wondered if Putin
did same to Navalny.

The ruler of Syria,
al-Assad is now gone,
but in Ukraine and Gaza,
the wars still carry on.

‘Round most of the world,
incumbents lost reelection.
Here in the U.S.,
45’s now 47.

Wall Street continued
its historic bull run.
And with the help of Wegovy,
the world lost a ton.

Taylor Swift can go home.
Eras came to an end.
But only on the field
did Travis’ knee bend.

Boeing’s labor strife
paused the 737.
They also left two astronauts
between here and heaven.

Some finance greats are
no longer among us.
We lost Jim Simons and
HD’s Bernie Marcus.

We lost the deep bass
Hollywood counted upon.
The voice of Mufasa
and Vader is gone.

The choir of angels
got a whole lot better
now that Cissy and Whitney
are singing together.

Arlo Guthrie’s old muse,
she has a new haunt.
Alice Brock is in heaven,
at a new restaurant.

Toby Keith and Kristofferson
climbed that heavenly stair.
Now jammin’ with Buffett,
must be 5 o’clock there.

Phil Donahue is up there,
booking new guests.
Wonder if Dr. Ruth
will be on his stage next.

A remake of “Tootsie”
seems not to be far.
Dabney Coleman was joined
by the great Teri Garr.

Whitey Herzog submitted
his final all-star roster.
With Rose, Mays and Cepeda;
not a single impostor.

Lou Carnesecca now coaches
a team that’s the best,
with players like Mutombo
and Walton and West.

Zagallo and Beckenbauer,
both Of World Cup fame,
will rejoin greats like Pele
for a quick pick-up game.

Remember that sound bite
you’d hear without fail?
We no longer have the voice
who said: “You’ve got mail!”

A poet laureate left us,
as they eventually would.
We can’t overlook
the great Charles Osgood.

And we would be remiss
not to share why we’re sad.
This exercise brought memories
of our dear old dad.

To others, he was Arthur,
Mr. Cashin or Chief.
But he was our father
and we share now our grief.

You knew him as
he wanted to be:
Historian, philanthropist,
soul of the NYSE.

If he joined you for drink,
you should have been flattered
and talk markets or politics,
or things that truly mattered.

From comments to speeches,
writing was his art.
But was he as funny
as the late Bob Newhart?

An Xavier alum,
a true Jesuit scholar.
Of his alma mater,
there was no one prouder.

Were it not for Ray Charles
or voters in Jersey,
you never would have seen him
on CNBC.

So as this year ends
and you look to ’25,
we offer two tips
to help you survive.

Cherish those still here.
Remember those you miss.
From the Cashins to yours,
all the best is our wish.

Begorrah, menorah,
Lanza and Kwanzaa,
May your New Year be filled
with true abbondanza!

And as the ice melted
in each of our glasses,
we knew if Dad read this
he’d kick both our asses. 

Rest in peace, Dad.

Art Cashin also traditionally led the annual singing of “Wait ’till the Sun Shines, Nellie” with current and former NYSE members on New Year’s Eve. On Tuesday, the sons will lead the singing at 1:45 p.m. ET and ring the bell to close out the year.

Tata Group holding company Tata Sons on Tuesday likely sold around 2.02 crore shares or 0.6% equity in Tata Consultancy Services or TCS in a block deal following which the shares fell 3% to Rs 4021.25 on BSE.

The deal is reported to be worth around Rs 9,000 crore at an average share price of Rs 4,043 per share.

Tata Sons had yesterday initiated the process of a block deal to sell up to 2.34 crore shares of TCS at a floor price of Rs 4,001 per share, representing a discount of 3.65% to Monday’s closing price, shows a term sheet issued by JP Morgan and Citigroup – joint book-runners to the deal.

However, a final confirmation of the buyer and seller would be known in the evening when stock exchanges release data.

Tata Sons owns the bulk of 72.38% stake in TCS which is India’s largest software services exporter and second most valued listed company with a market capitalisation of Rs 14.6 lakh crore.

While there is no official clarification for the reason behind the stake sale yet, it is being believed that the fundraising is part of an exercise by the salt-to-software conglomerate to cut down debt, fuel ambitions in newer areas like semiconductors. It could also being done to avoid Tata Sons IPO under RBI rules which mandate all ‘upper layer’ non-banking finance companies (NBFCs) from getting listed on stock exchanges.After RBI reportedly refused to give an exemption to Tata Sons as it could lead to similar demands from other corporate holding companies, the company has been consulting legal and finance experts to find a solution.Also Read: Tata Sons to sell TCS shares worth Rs 9,000 crore. Is it to dodge the mega IPO?

Tata Sons has borrowings worth over Rs 20,000 crore. If it brings down the borrowings to below Rs 100 crore level, it could no more fall under the RBI CIC rule ambit, according to reports.

Tata Sons is majorly held by the Dorabji Tata Trust (28%) and the Ratan Tata Trust (24%). However, the group is also known to have several cross-holdings across its companies. Other shareholders include Sterling Investment, Cyrus Investments, Tata Motors, Tata Chemicals, and Tata Power.

The Tata Group is India’s most valued conglomerate with the market value of all listed entities going above the Rs 30-lakh crore mark. TCS alone contributes to half of the value.

As the buzz over the potential listing of Tata Sons, the holding company of the Rs 30 lakh crore conglomerate, grows louder, investors have already started betting on Tata Chemicals which could be the biggest beneficiary of the mega IPO. Shares of Tata Chemicals rallied 8% to the day’s high at Rs 1,084.80 on BSE on Tuesday.

Classified as an upper-layer NBFC last year by RBI Tata Sons must list itself on stock exchanges by September 2025. It was last year reported that Tata Sons could be worth Rs 11 lakh crore and a 5% stake sale would lead to an IPO size of about Rs 55,000 crore.

Tata Sons is majorly owned by Dorabji Tata Trust (28%) and Ratan Tata Trust (24%). Both Tata Motors and Tata Chemicals own about 3% stake in the holding company, while Tata Power owns 2% and Indian Hotels 1%.

“However, the only realistic way to get exposure to the potential value unlocking (of Tata Sons stake) is via Tata Chemicals wherein the ownership of Tata Sons potentially amounts to 80% of the company’s market capitalisation. The stake is worth 16-21% of the market capitalisation for the other three companies,” said Vidit Shah of Spark Capital.

Calculations done by the brokerage show that the value of Tata Chemicals’ 3% stake in Tata Sons is worth around Rs 19,850 crore or 80% of the market value of the company.

“The intrinsic business of Tata Chemicals is trading at ~11x FY25 PE (worth Rs 10,900 crore), which we believe to be fair given the headwinds that the soda ash industry is currently facing. However, valuations could potentially re-rate on announcements of growth plans/ improvement in soda ash realisations,” Shah said.Also read: Tata Motors shares rally 8% to fresh high on value discovery hopes after demerger

Tata Sons IPO valuation

Intrinsic valuation calculations can however change depending on how much holding company discount one is willing to give.

“While investors are likely to give a holding company discount of 30-60%, while calculating the equity value, we value Tata Sons at Rs 7.8 lakh crore post factoring for a 60% holding company discount of its listed investments and valuing the unlisted investments at ~Rs1.6 lac crore. We note that the holding company discount given by the street to Godrej Industries and Bajaj Holdings is in a similar range. A change in the discount assumption of 10% could lead to a Rs 1.5-1.6 lakh crore change in the equity value of Tata Sons,” the analyst said.

The market value of Tata Sons’ listed investments is estimated at Rs 16 lakh crore and the market value of unlisted investments could be worth around Rs 1-2 lakh crore given the group’s foray into semiconductors and EV batteries.

RBI rules mandate not only the listing of Tata Sons but also that of Tata Capital Financial Services by September 2025.

Tata stocks are investor favourite

Shares of another Tata Group holding company Tata Investment Corporation, in the meantime, have been rallying non-stop to double in the first two months of 2024 and are up 335% in the last year. Several other Tata stocks like Trent and Tata Motors have more than doubled wealth in the last year.

The combined market capitalisation of all listed Tata stocks recently crossed the Rs 30 lakh crore mark, making the salt-to-software conglomerate’s value bigger than the entire economy of Pakistan.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)