New Delhi: In a significant development the Reserve Bank of India (RBI) has asked the Tata Group to list its holding company – Tata Sons. The company was given a three-year deadline to do so and now only a day remains until the deadline. Tata Sons is the holding company of the country’s largest business group. The possible public listing of the USD200-billion group which owns Jaguar Land Rover Air India Taj Hotels and a major European steel company could have massive effects on India’s top businesses and trusts. Why Is Government Monitoring Development Regarding Tata Sons Potential Listing? Not only the government but also the industry and even people are closely monitoring the development. Notably the listed companies of the Tata Group are among the favourite companies of investors. These companies have millions of shareholders. These seven companies can boost liquidity on their balance sheets giving them more readily available funds. The matter also involves complex financial regulations and shows how the RBI is working to oversee the country’s shadow banks. What Is The Problem With Listing? It is worth mentioning that the Tata Sons listing last date comes when the trust is witnessing differences among the trustees controlling the Tata Trusts. Tata Trusts holds 66 percent stake in Tata Sons. Now after the demise of Ratan Tata who passed away in October last year the group is implementing a new framework. The Trust has passed a resolution so that Tata Sons should remain unlisted. According to a source sudden listing could limit Tata Sons’ ability to operate flexibly. Why Is RBI After Tata Sons? In the financial year 2025 the Tata Groups gross profit was Rs 15.34 lakh crore and net profit was Rs 13 lakh crore. The company’s market capitalisation was Rs26.7 lakh crore. Three years ago in 2022 the RBI designated 16 companies as upper-tier non-banking financial companies (NBFCs) mandating that these companies go public within a three-year timeframe. In March 2024 Tata Sons applied to deregister as an NBFC in order to escape regulatory oversight and the obligation to list. In January this year the banking regulator stated that the application of Tata Sons was under consideration. What Are The Demands Of SP Groups? Tata Sons has reduced its debt and had requested RBI to cancel its NBFC registration by March 2024. It improved its financial position from a net debt of Rs 20642 crore in March 2023 to a net cash surplus of Rs 2670 crore by March 2024. The Shapoorji Pallonji Group holds an 18.37% stake in Tata Sons. The Shapoorji Pallonji Group is seeking a public listing for Tata Sons to enhance value. The transition to a cash surplus hints a positive financial turnaround for Tata Sons.