InGovern Research has called on the Reserve Bank of India (RBI) to formally reject Tata Sons' application to deregister as a Systemically Important Core Investment Company (CIC). The advisory firm argues that allowing such deregistration would set a precedent for regulatory arbitrage and weaken the financial oversight framework. The report, titled “Tata Sons’ Deregistration: A Case for Regulatory Finality,” highlights that Tata Sons' application, submitted in March 2024, is untenable due to regulatory changes introduced in 2026. The evolving Scale-Based Regulation (SBR) framework has removed the legal basis for Tata Sons to exit the regulatory ambit applicable to large non-banking financial entities. Despite Tata Sons' efforts to repay over ₹20,000 crore in standalone debt, the RBI's “look-through” approach considers indirect access to public capital through its group companies, which undermines claims for exemption. The firm also notes that Tata Sons continues to be classified as an “Upper Layer” NBFC, with assets exceeding ₹1.75 lakh crore—well above the ₹1,000 crore threshold for voluntary deregistration. InGovern emphasizes that allowing Tata Sons to remain unlisted while controlling large listed entities contradicts regulatory consistency and raises governance concerns that could disadvantage over 1.2 crore public shareholders.