The Reserve Bank of India rejected Tata Sons' request for an exemption from listing rules, delivering a win for Shapoor Mistry and his Shapoorji Pallonji Group, which holds an 18.4% stake in Tata Sons valued at roughly $31 billion. Mistry, whose net worth is nearly three-quarters tied to the Tata holding, had long pushed for a public listing to unlock value amid SP Group's debt challenges. The RBI's decision follows a September 2022 directive classifying Tata Sons as a systemically important shadow bank with a three-year deadline to list. That deadline expired in September 2025, and the regulator declined to extend it, citing potential financial stability risks.

SP Group executives met with Indian government officials, arguing that default risks from the construction giant could trigger broader contagion. The group recently completed a major bond sale of 151 billion rupees ($1.6 billion), with global investors including Farallon Capital Management and Cerberus Capital Management participating. Deal terms allowed 18 months for monetizing the Tata stake.

The RBI also filed a caveat in the Bombay High Court to protect its stance, suggesting legal battles may continue. While the decision supports Mistry's long-running push, experts say multiple hurdles remain before SP Group's financial woes are resolved. The Tata Group, with $185 billion in revenue, remains central to India's technology ambitions, including semiconductor manufacturing in Gujarat.