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Mumbai: Just one day remains now for the deadline to lapse on what could be one of the most consequential regulatory interventions in India's business history-the Indian central bank's stance that Tata Sons, the holding company of India's largest and most storied business group, should become a publicly listed company.A potential listing by the holding company of the sprawling $200-billion salt-to-semiconductors group, with such marquee, globe-spanning holdings as British carmaker Jaguar Land Rover, Air India, Taj Hotels and one of Europe's largest steel makers, will be an event with far-reaching consequences for some of India's best-known businesses, trusts and executives.Also Read: Tata & SP Group reignite exit talks after yearsThat's what makes the mere possibility a major business story with wide public interest-listed group companies are market darlings, with millions of shareholders. Of them, seven are shareholders in parent Tata Sons. 124202706 Evolving Regulation of Non-banks These seven companies could gain an expansion of liquidity in their balance sheets.Parallelly, it involves intricate, evolving threads of financial regulation that indicate how the Reserve Bank of India intends to control India's shadow banks and how the notion of 'Too Big to Fail', first thrust into public consciousness in the aftermath of the global financial crisis of 2008, is now encoded into India's regulatory DNA.The timing of the looming deadline is an inopportune one for the group. Divisions have emerged among key trustees who control Tata Trusts, a clutch of public charitable trusts that own 66% in Tata Sons.It is also settling into an operating rhythm post the death, in October 2024, of its long-serving patriarch Ratan Tata, who was a source of stability and authority at the helm of affairs. Tata Trusts has passed a resolution saying Tata Sons must remain unlisted. 124202779Executives close to Tata Sons argue that the company is not structurally ready to list, pointing to capital-intensive commitments in semiconductors and aviation. "An immediate listing could constrain Tata Sons' ability to act with flexibility. The focus now is on making the group future-fit, not on compliance-driven restructuring," said a person aware of its stance.The group's scale underscores the stakes - in FY25, it reported revenues of Rs 15.34 lakh crore, net profits of Rs 1.13 lakh crore, with a market cap of Rs 26.7 lakh crore.The imminent deadline on September 30 marks three years from the date India's central bank-the Reserve Bank of India-notified 16 companies, including Tata Sons, as upper-layer shadow banks in a new classification based on assets size. The new regulation, which came into effect in October 2021, said shadow banks, or non-banking finance companies (NBFCs), falling in the upper-layer classification, must list within three years of being notified as such.In March 2024, Tata Sons applied to RBI to deregister itself as an NBFC, to avoid coming under the regulatory purview and the requirement to list. In the last notification, which appeared in January 2025, the central bank said the company's application was under consideration, and that its inclusion on the list was "without prejudice" to the outcome of its application, meaning the deadline isn't impacted by the application.Since then, the regulator has been silent on the matter.But how did it all come to such a pass that India's banking regulator and the country's largest business conglomerate are in a virtual face-off?Ironically, it has little to do with Tata Sons as an entity specifically. It's more a case of getting caught in a regulatory net that is designed to cover all bases.An Obsession with ScaleIt's important to first understand what NBFCs are and how they had been regulated prior to 2021.The method of determination is popularly called the 50-50 test. A company is deemed to be an NBFC if 50% of its assets are financial assets and 50% of its income is from financial activities. A company meeting these two conditions is required to apply to RBI for an NBFC registration.The regulation of shadow banks, prior to 2021, had two dimensions-the sphere of activity (housing finance company, infrastructure finance company, core investment company, etc) and whether a company was accepting public deposits.Then came the collapse of IL&FS in 2018, which sent shockwaves through the country's financial system. An NBFC under the Core Investment Company classification, which means it mainly invests in group companies, IL&FS' subsidiaries started defaulting on payments in 2018.As the IL&FS crisis curtailed liquidity for NBFCs and sparked concerns of a financial contagion, prominent figures questioned RBI's lax regulation of the sector. Arvind Subramanian, former chief economic adviser, for instance, said in his book that RBI should be held responsible for the collapse of IL&FS as it was the regulator of NBFCs.In 2020 came the first indication that RBI was looking at adding a third dimension-scale-to NBFC regulation. In December 2020, it said a discussion paper on scale-based regulation will be released for public consultation.Matters moved quickly then on.The discussion paper was released on January 22, 2021, and after incorporating feedback, the central bank issued the framework on scale-based regulation (SBR) of NBFCs on October 22, 2021.The discussion paper laid down the concern. "It may be noted that one of the largest core investment companies defaulted on its payment obligations towards market liabilities, and a series of defaults followed. The liquidity stress arising out of this event impacted the fundraising ability of NBFCs, both big and small. There were concerns that the liquidity stress could translate into solvency concerns in some instances," the paper said, referring to the IL&FS collapse.The new framework placed emphasis on scale, complexity, interconnectedness and related factors to arrive at a score for every NBFC and based on these factors, they would now be classified into base, mid, upper and top-layer NBFCs, and they would be subject to ascending regulatory stringency.But scale, irrespective of any other factor, became an overriding concern. "The top ten eligible NBFCs in terms of their asset size shall always reside in the upper layer, irrespective of any other factor," the regulation said.The central bank would notify NBFCs classified as upper-layer and once thus notified, those companies should list themselves within three years. When RBI first notified the list of upper-layer NBFCs under this new scale-based framework on September 30, 2022, Tata Sons was included.Tata ResponseTata Sons has said little in public about the listing issue. The company did not comment on queries sent for this story.But it has pared down debt and moved an application to RBI in March 2024 to surrender its NBFC registration. It swung from a net debt of ₹20,642 crore in March 2023 to a net cash surplus of ₹2,670 crore by March 2024, aided by the sale of 23.4 million TCS shares.Another technical argument the group has made, according to people close to the developments, is a provision in a regulation dating back to 2016. In August 2016, RBI issued so-called master directions that will apply to a class of shadow banks known as Core Investment Companies (CIC). These are companies that mostly invest in group companies. The condition is that 90% of net assets should be in the securities of group companies.In August 2016, RBI said if such a company had assets less than Rs 100 crore, it needn't register with the central bank. If a CIC had assets greater than Rs100 crore, but it did not access public funds, then also it could remain an "unregistered CIC".Whether this is a point that the regulator would permit to be retrospectively applied, and whether Tata Sons' indirect access to public funds will be deemed to be a factor are all questions we might never fully have answers to.For Shapoorji Pallonji Group, with its 18.37% stake, a listing would be transformational. It would unlock value of its long-held shares and give the group liquidity, and a way out of its indebtedness.ET reported in August this year that Tata Sons chairman N Chandrasekaran and Shapoorji Pallonji Group chairman Shapoor Mistry have met to discuss the way forward.The government is also understood to be keeping a watch on developments.

Mumbai: Investors, wearied by sharp swings and a year of uncertainty on Dalal Street, may not be out of the rough yet. The underperformance of domestic equities - the worst 12-month stretch in recent years - may persist as investors await fresh triggers that could help India reclaim its standing as one of the most favoured investment destinations. With corporate earnings seen reviving only in FY27, the most immediate spark for reversing the weak show could be resolution of the India-US tariff dispute, which may set the stage for the Sensex and Nifty to hit fresh all-time highs. Both indices are about 6% away from records."The earnings growth for Nifty is expected to be in double digits by FY27 but until then we may see price, time or both price and time correction," said Nilesh Shah, MD at Kotak Mahindra Asset Management. "If there is a positive tariff deal, it could act as a trigger."Since end-September 2024, when the market hit highs after a record-breaking bull run, the Sensex and Nifty have shed 6.3% and 5.9%, respectively , leaving India's key gauges trailing global peers and alternative assets. Bitcoin has surged 79%, while gold and silver have each advanced more than 50%.The weak show highlights how earnings disappointment, overseas exits to the tune of ₹2.4 lakh crore and rich valuations have weighed on equities as domestic funds have poured in ₹5.3 lakh crore. Since the June quarter last year, earnings growth has decelerated to single digits in the last five quarters, resulting in global money managers questioning the country's premium stock valuations.The most recent jolt for the market has been from the Donald Trump administration's tariff offensive against India that's left investors wondering what's in store for equities now."The noise on the tariff front is expected to continue but the impact will be limited in India as the US economy is also witnessing a slowdown," said A Balasubramanian, MD and CEO Aditya Birla Sun Life AMC. "The negotiations on tariff are likely to be finalised by November and since the worst is priced in, the Sensex is expected to surpass its all-time high from last year by the end of this financial year."The damage has been deeper in the broader market: mid-cap and small-cap indices have lost far more ground, with two-thirds of Nifty 500 stocks still below year-ago levels. The Nifty Mid-Cap 150 and Small-cap 250 indices are trading 6.3% and 9.5% lower than their September highs.So far this year, the mid-cap and small-cap indices are down 0.8% and 6%, respectively, while the Nifty gained 4.3% and the Sensex advanced 3%. 124202554FOREIGN FLOWS Reversal of the foreign sell-off that began late in September last year and fresh flows will be key to the revival of domestic stocks. Global investors dumped shares worth over Rs 2.81 lakh crore in five months between October and February. March witnessed a reversal of foreign flows, but the buying wasn’t sustained for long and the direction turned again in July. “Active foreign investors have been regular sellers in the secondary market since October last year and imposition of unjust tariff by the US may have made them a bit aggressive causing the recent correction,” said Shah. Since July, overseas investors have offloaded shares worth over Rs 90,000 crore. They have sold shares worth Rs 16,940 crore in September so far. India has lost some “cyclical favour” with foreign investors this year, said Abhiram Eleswarapu, head of equities, BNP Paribas. “Foreign selling has eased a bit recently, but sticky money coming back will depend on earnings bottoming out and trade negotiations being favourable,” said Eleswarapu. “If these triggers don’t play out, markets could remain choppy.” In the absence of immediate respite for equities, investors could continue betting on gold and silver. Diehard equity enthusiasts could incrementally increase exposure to blue-chip stocks, which are better placed in terms of resilience and valuations compared to the smaller shares, according to experts. The uncertainty induced by the tariffs have led to higher demand for gold and led to a rally in the yellow metal. Gold prices hit an all-time high in September, crossing Rs 1 lakh per 10 grams. On Friday, gold prices stood at Rs 1.17 lakh per 10 grams in Mumbai.

Tata Group-owned Jaguar Land Rover (JLR) has sought £2 billion emergency funding from a handful of global banks in the aftermath of the late August cyberattack that left the car maker, also Britain's largest automotive employer, largely incapacitated, said people aware of the matter.The 18-month facility with committed backstop arrangements is expected to show the company has liquidity to tide over the loss in revenue after it was forced to hit the brakes and shut down its systems and UK factories on September 1. Since then, production at its factories in the UK, Slovakia, Brazil and even India have come to a standstill. Its Chinese joint venture however is said to be operating.At least three of the Tata Group's top banking partners - Standard Chartered Bank, Citi and MUFG - have agreed to offer the urgent credit line and subsequently sell down or syndicate the debt to a larger group.124199759Political InterventionThe pricing is still being negotiated, added the people mentioned above.In addition, the UK government announced over the weekend it will guarantee or underwrite a £1.5 billion loan given by another commercial banking consortium led by HSBC to JLR.This line, to be paid back over five years, is expected to allay fears of suppliers who fear going bust if the sudden revenue drought continues.The UK government will guarantee 80% of the facility under the Export Credit Guarantee Scheme while the banks will have to bear the remaining 20%.“It’s a political intervention, which is why a UK bank had to take the lead,” said an executive. “Together, this is a significant credit going out in the market. Nobody knows if we are looking at significant losses in future or ratings downgrades.”A Tata Motors spokesperson declined to comment.As per initial estimates, the shutdown was expected to last until September 24, but it was later extended to October 1, causing a long production stoppage. Parent Tata Motors shares dropped nearly 5% last week, though it ended trading on Friday in the green, up 1.45%, on the NSE. A halt in production until November could lead to a revenue impact upwards of £3.5 billion and about £1.3 billion in gross profit, according to academics and industry experts in the UK. Even a conservative estimate will translate to a £2 billion financial hit that the luxury car maker will have to bear for months before production normalises. This is higher than JLR's net profit of £1.8 billion for the full 2025 financial year. JLR contributes 70% to the Tata Motors overall top line.The company employs 30,000 directly with about 100,000 people at its vendors, according to the BBC, which reported that a group calling itself Scattered Lapsus$ Hunters claimed responsibility for the attack that froze JLR’s IT systems and is said to be costing it at least £50 million a week in lost production.JLR’s turnaround under Tata has resulted in 11 consecutive quarters of profits, despite tariffs and global instability prompted by Russia’s invasion of Ukraine.Grinding haltThe severity of the cyberattack has caused turmoil across the supply chain, particularly in the UK around headquarters in Gaydon and the Solihull factory, where it makes the money-spinning Range Rovers. With little hope of an imminent restart, JLR suppliers and dealers fear production in the UK may not resume for several months, thereby compounding stress on the books.“Tata Motors officials are leading the negotiations. The fact that they are driving it is enough of a comfort factor,” said an executive.It’s unclear if Tata Motors or parent Tata Sons will be willing to give a formal guarantee against the credit line but company officials say that seems unlikely.“We are expecting normalcy to return by November. It’s a fluid situation that is changing every hour,” said an executive involved in the financing negotiations.Government aidIt was earlier reported that the UK government’s business secretary Peter Kyle was considering an unusual scheme under which the government could purchase car components from struggling suppliers that would later be sold to JLR once it resumed production. Over the last week, he held a series of emergency meetings with JLR suppliers struggling to meet payments as political pressure mounts to arrive at a solution.There have been reports that lack of cyber insurance will mean the company having to foot the bill. This could not be independently verified.Even though the computer-aided design, engineering software and product lifecycle software were down last week, the company has implemented workarounds to make payments and ship cars to customers. It has focused on keeping existing customers happy with a flow of spare parts.According to a report in Sunday Times, the company is planning to reopen its £500 million engine manufacturing centre in early October. It reported the company has put suppliers on notice that production at its Wolverhampton facility will resume on October 6, subject to the engine manufacturing centre systems passing tests to ensure no remnants of the virus exist.Group company Tata Consultancy Services (TCS) has been helping JLR minimise the damage. Under a five-year, £800 million contract agreed in 2023, TCS and JLR planned to “rapidly transform, simplify, and manage its digital and IT estate, supporting its broader strategic business transformation”. TCS runs large parts of JLR’s key computer systems, ranging from its networks to data connections, and, crucially, its cybersecurity.

Mumbai : India's IPO market witnessed one of the most vibrant periods in recent times over the past year, defying the uncertainty that has gripped secondary markets since the end of September 2024. From October 2024 to September 2025, 86 IPOs raised ₹1,70,897 crore-nearly twice the amount mobilised in the same period a year earlier.During the same period, the BSE Sensex fell 3.5% to 80,426 from 84,266, while the Nifty slipped 4.4% to 24,655 from 25,797. In comparison, the previous year, from October 2023 to September 2024, saw 88 IPOs that together raised only ₹90,436 crore. The IPO boom this year was driven by blockbuster issues, a more diverse sector mix, and a deep pool of domestic institutional money."We have seen the surge in domestic liquidity from mutual funds, insurers, and even retail investors which has reduced reliance on foreign flows," said V Jayasankar, MD, Kotak Investment Banking. "We had perhaps the best quarter for IPOs between October and December 2024, and anticipate a similar trend this year."The frenzy began in October 2024, with 30 IPOs raising ₹95,513 crore in just three months, followed by a slowdown in the first half of 2025. Activity rebounded in July-September 2025, when 37 IPOs mobilised ₹45,551 crore. 124202507In the first nine months of 2025 (January-September), 56 IPOs raised ₹75,384 crore, compared with 60 IPOs raising ₹64,011 crore in the same period of 2024. The market this year has seen more variety, with HDB Financial Services' ₹12,500-crore issue the largest so far, followed by Hexaware Technologies at ₹8,750 crore and NSDL at ₹4,010 crore."It's becoming tougher to make money in the secondary market, so a lot of that money is flowing into the primary market," said Siddarth Bhamre, head of institutional research at Asit C Mehta. "The IPO market is essentially a function of a bull market and liquidity, and this frenzy will continue."In 2024, Hyundai Motor India led the pack with a Rs 27,859-crore issue, followed by Swiggy at Rs 11,327 crore and NTPC Green Energy at Rs 10,000 crore. The top five IPOs contributed roughly 70% of that year’s mobilisation. Looking ahead, the pipeline remains strong. Jayasankar said upcoming IPOs span diverse sectors, including digital tech, NBFCs, consumer/retail, auto, renewable energy, and TMT (technology, media and telecommunications). “Going forward, there is a strong pipeline of over 150 IPOs with Sebi, both approved and awaiting approval, with a total issue size of nearly `3 lakh crore,” said Pranav Haldea, managing director at Prime Database. Among the names expected in the coming months are Tata Capital (Rs 17,000 crore), LG Electronics (Rs 10,000 crore), WeWork, Hero Fincorp, Hero Motors, and BoAt, among others.

As India clinched the Asia Cup 2025 after beating Pakistan in a thrilling final at the Dubai International Stadium on Sunday, the whole nation congratulated the Men in BlueReacting to the victory, PM Modi took to X to congratulate the Indian team for beating Pakistan by 5 wickets. “Operation Sindoor on the games field. Outcome is the same – India wins!” he said. — narendramodi (@narendramodi) India bowled out Pakistan for a modest 146 runs. In response, India chased down the target with two balls to spare, winning by five wickets. The Men in Blue had already defeated Pakistan twice in this edition of the multinational tournament.Also Read: India vs Pakistan match report- India edge past Pakistan by five wickets in a thriller to clinch 2025 Asia Cup title Tilak Varma played a pivotal role, scoring an unbeaten 69 off 53 balls. Shivam Dube contributed a quickfire 33 off 22 balls, and Rinku Singh sealed the victory with a boundary in the final over. Earlier, Pakistan had collapsed from a strong 113/1 to 146 all out in 19.1 overs. Kuldeep Yadav was instrumental in dismantling the batting lineup, taking 4 wickets for 30 runs. The intense rivalry was also marked by the lack of handshakes between players, continuing the tension observed in earlier matches of the tournament.Asia Cup victory amid controversies and geopolitical tensionsThe Asia Cup 2025 final was marred by several controversies. Pakistan's Haris Rauf and Shaheen Afridi were accused of disrespecting India's national anthem by talking during its performance. Additionally, Rauf's repeated "fighter jet" gestures, interpreted as provocative, led to widespread criticism and a 30% match fee fine imposed by the ICC. Indian captain Suryakumar Yadav also faced a similar fine for dedicating the team's victory to the victims of the Pahalgam terror attack and the Indian armed forces. The "no handshake" policy, initiated by India in the Super Four stage, continued into the final, with Yadav deliberately avoiding a handshake with a former Pakistan captain at the toss. The backdrop to these tensions includes the Pahalgam terror attack in April 2025, where 26 Indian civilians were killed. In response, India launched "Operation Sindoor," targeting militant infrastructure in Pakistan occupied Kashmir and mainland Pakistan.