India's central bank has rejected an application from Tata Sons Pvt. to surrender its status as a shadow lender, according to people familiar with the matter. The decision implies the Reserve Bank of India expects the company to adhere to rules for such entities, which include an initial public offering. Tata Sons is the holding company of the $185 billion Tata Group and falls within the RBI's so-called upper-layer non-bank lender category.