Stock market investors have been waiting for the IPO of Tata Sons for a long time. It was expected that Tata Sons’ IPO would hit the market by September 2025. But instead of ending, this controversy is increasing. The controversy escalated so much that the matter reached the court and now a notice was also sent to RBI.
Due to Tata Sons dispute and conflict of interest, a legal notice has been sent to RBI. RBI is considering not to launch IPO of Tata Sons. In such a situation, the notice has further increased the controversy.
conflicts of interest
In the notice sent, it has been claimed that as long as Venu Srinivasan is in RBI, he will continue to have conflict of interest with Tata Sons, because he is also in Tata Trust. If a person from a corporate house is on the board of the regulator, then in such a situation the regulator will take independent and impartial decisions, it is also not possible. Venu has been appointed director of RBI from 2022 to 2026.
what are the allegations
It has been alleged in the notice that RBI is committing various irregularities in the case of Tata Sons IPO. For example, Tata Sons has demanded cancellation of its registration as a Chief Investment Company (CIC), which is wrong in law. RBI had recently said in RTI that it is considering the application of cancellation of CIC of Tata Sons.
Market listing before September 2025
The legal notice states that to protect the interests of investors, borrowers and the general public, such applications should not be considered. RBI had brought scale based regulation i.e. SBR. In this SBR, a total of 15 companies were kept in the upper layer, according to the rules, all of them have to be listed in the stock exchange before September 2025. Out of these, 11 companies have been listed. Four companies are left including Tata Sons.
Why discount in listing?
It has been said in the notice that when 11 companies followed the RBI rules then how can Tata Sons be exempted from listing. If exemption is given then it would be completely wrong in law. It has been alleged in the notice that Tata Sons takes public money directly or indirectly. Even though it has recently sought exemption from listing after repaying the loan, it wants to avoid the scrutiny of RBI by surrendering this CIC. Tata Sons’ IPO will be the country’s biggest IPO. If it sells even five percent stake, it will raise Rs 55,000 crore.