New Delhi, Oct. 25 -- RBI Governor Sanjay Malhotra has justified the classification of Tata Sons as an upper-layer NBFC, saying that any large NBFCs or core investment companies that handle public funds or leverage a group's balance sheet need to be registered with the central bank and follow the requisite listing norms.

Large NBFCs and core investment companies (CIC) like Tata Sons and others are required to be registered with the RBI because of the systemic risks, because they sit on top of group companies where they leverage funds and they use the balance sheets of the group companies to return those funds, he said at the NDTV World Summit on Friday.

"So, the funds of the public, whether it is through corporate bonds, banks and other...