New Delhi, Sept. 14 -- The Reserve Bank of India's (RBI's) rejection of Tata Sons Pvt. Ltd.'s attempt to deregister stands in contrast to a similar situation faced three years ago by another holding company: Shanghvi Finance.

The company, fully owned by billionaire Dilip Shanghvi and his wife, is a promoter entity set up in 1989. RBI first classified it as an upper-layer non-banking financial company investment and credit company or NBFC-ICC in September 2022, among 16 companies it wanted to go public by September 2025.

RBI regulates 12 categories of non-banks. Companies such as Bajaj Finance Ltd. and L&T Finance Ltd., whose primary business is lending, are categorized as investment and credit companies.

Shanghvi Finance applied to sur...