Following a crucial directive from the Reserve Bank of India (RBI), the stock market listing of Tata Sons—one of the country's largest business conglomerates—is almost certain. Financial experts note that with the regulatory rules becoming stricter for Tata Sons, which falls under the 'Upper Layer NBFC' (NBFC-UL) category, the company is left with little choice but to proceed with a public listing. Tata Sons has a valuation of over Rs 2 lakh crore. The mandate dictates that any NBFC crossing Rs 1 lakh crore in valuation becomes an Upper Layer NBFC.

Driven by the RBI's decision, Tata Sons' listing process is expected to be completed in the coming months. Financial experts evaluate that this will bring massive benefits to both the company and its shareholders. The key advantages include:

* Better Liquidity for Shareholders: Tata Sons' proposed public listing will ensure substantial liquidity for existing shareholders. The Shapoorji Pallonji (SP) Group, which holds an 18% stake in Tata Sons, will get an opportunity to fully unlock the value of its investment and sell shares to ease debt burdens.

* Benefits for Listed Tata Companies: The listing of Tata Sons will also benefit other prominent listed companies within the Tata Group. It will help seven listed Tata Group companies holding shares in Tata Sons unlock great liquidity from these long-held investments.

* Direct Opportunity for Retail Investors: This IPO will provide retail investors with a direct opportunity to invest in Tata Sons, the primary holding company of the Tata Group. It will also pave the way for investors to indirectly benefit from unlisted Tata Group companies (such as Tata Digital, Air India, etc.).

* Greater Capital Availability and Growth: By transforming into a public company, Tata Sons will find it easier to raise funds in the future. The company will gain significant financial freedom to secure loans and issue new shares as needed. The financial world assesses that this will strengthen capital-intensive new ventures such as semiconductor manufacturing and cutting-edge technologies.

Upper Layer - NBFC

The list of Non-Banking Financial Companies (NBFCs) categorized under the Upper Layer (NBFC-UL) as per the Reserve Bank of India's (RBI) Scale Based Regulation (SBR) framework:

* REC Limited - Infrastructure Finance Company

* Power Finance Corporation Limited - Infrastructure Finance Company

* Indian Railway Finance Corporation Limited - Infrastructure Finance Company

* Bajaj Finance Limited - Deposit-taking NBFC-ICC

* Shriram Finance Limited - Deposit-taking NBFC-ICC

* LIC Housing Finance Limited - Deposit-taking HFC

* Cholamandalam Investment and Finance Company Limited - Non-deposit-taking NBFC-ICC

* Tata Capital Limited - Non-deposit-taking NBFC-ICC

* Tata Sons Private Limited - Core Investment Company

* Muthoot Finance Limited - Non-deposit-taking NBFC-ICC

* Aditya Birla Capital Limited - Non-deposit-taking NBFC-ICC

* Housing and Urban Development Corporation Limited (HUDCO) - Infrastructure Finance Company

* Mahindra & Mahindra Financial Services Limited - Deposit-taking NBFC-ICC

* L&T Finance Limited - Non-deposit-taking NBFC-ICC

* Bajaj Housing Finance Limited - Non-deposit-taking HFC

* HDB Financial Services Limited - Non-deposit-taking NBFC-ICC

* Piramal Finance Limited - Non-deposit-taking NBFC-ICC

In addition to these, two more companies that were included in this list in previous years but do not directly qualify under the current criteria continue to remain under special observation and higher regulations in the Upper Layer as per RBI stipulations:

* PNB Housing Finance Limited

* Sammaan Capital Limited

Except for Tata Sons, all the companies on this list are listed on the stock market.

(ICC - Investment and Credit Company, HFC - Housing Finance Company)