New Delhi, June 24 -- In what could provide a breather for Tata Sons, the holding company of the Tata Group, the Reserve Bank of India (RBI) has seemingly removed a contentious definition of indirect public funds received by non-bank financiers. The previous definition, if implemented, would have forced Tata Sons to make an initial public offer (IPO), a prospect resisted by many of its top executives as well as its majority-owner Tata Trusts.

On 29 April, the central bank had defined indirect receipts of public funds as "funds received not directly but through associates and group entities which have access to public funds", a definition which was seen as eventually leading to an IPO of Tata Sons.

The reason: Publicly listed companies s...