The Reserve Bank of India (RBI) recently issued a directive that complicates Tata Sons' plans to avoid going public. The RBI clarified that equity received from group companies counts as indirect access to public funds, rejecting arguments from market participants that sought a narrower interpretation. This ruling directly impacts Tata Sons' 2024 application to deregister as a core investment company, which is a type of non-banking finance company (NBFC). Tata Sons, with estimated standalone assets of ₹1.75 lakh crore (approximately $210 billion USD), is well above the asset threshold for deregistration. The directive, effective from July 1, 2026, leaves Tata Sons' claim of not accessing public funds untenable, as its operating arms have accessed debt markets. Internal disagreements within Tata Trusts regarding a potential IPO have also emerged, with some members advocating for public listing as a necessary evolution for governance and accountability.