Ingov suggests RBI – The theory of “indirect receipt of public funds” is designed to capture this exact scenario of systemic interconnectedness. Proxy advisory firm InGovern Research Services has recommended that the Reserve Bank of India (RBI) should issue a clear, formal rejection of Tata Sons’ application for deregistration as a Chief Investment Company (CIC), thereby preserving the sanctity of the scale-based regulatory (SBR) framework and protecting the interests of over 1. 2 crore public shareholders invested in the Tata ecosystem.

InGovern said in a report released on Friday that attempts to circumvent mandatory listing obligations under the SBR framework are inconsistent with existing standards of financial oversight. Conversion into a listed entity triggers the Listing Obligations and Disclosure Requirements (LODR) of the Securities and Exchange Board of India (SEBI). “For a holding company controlling assets worth Rs 1.

75 lakh crore (including systemically listed companies like TCS, Tata Motors and Tata Power), SEBI’s LODR is essential to control related party transactions (RPTs) and ensure that group-level capital allocation is transparent to the broader market,” InGovern said in a report.