UPSC Prelims Practice Questions — RBI files caveat after rejecting Tata Sons bid to avoid listing

Q1. Under the Reserve Bank of India's Scale Based Regulation framework, certain categories of NBFCs are placed in the Middle Layer irrespective of their asset size. Consider the following: 1. Standalone Primary Dealers 2. Infrastructure Debt Fund–NBFCs 3. NBFC–Account Aggregators 4. Housing Finance Companies Which of the above is/are correctly identified?

  1. Standalone Primary Dealers
  2. Infrastructure Debt Fund–NBFCs
  3. NBFC–Account Aggregators
  4. Housing Finance Companies
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 3 and 4 only

Q2. Among the conditions laid down by the Reserve Bank of India for a company to be treated as a Core Investment Company, the highest prescribed floor — not less than 90 per cent of net assets — applies to which one of the following?

  • A. Its investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies
  • B. Its investment in equity shares of group companies together with units of Infrastructure Investment Trusts held as sponsor
  • C. Its investment in bank deposits, money market instruments and government securities taken together
  • D. Its holding in the paid-up equity capital of each group company in which it has invested

Q3. In September 2026 the Reserve Bank of India declined to accede to an application for voluntary surrender of the Core Investment Company registration held by which one of the following Tata group entities, thereby keeping it bound by the Upper Layer listing mandate?

  • A. Tata Capital Limited, the group's diversified lending and financial services arm
  • B. Tata Sons Private Limited, the principal holding company of the Tata group
  • C. Tata Investment Corporation Limited, the group's listed investment company
  • D. Tata Industries Limited, the group's promoter of new-technology ventures

Q4. Anticipating litigation over its 2026 decision rejecting Tata Sons' deregistration plea, the Reserve Bank of India lodged a caveat before which one of the following forums?

  • A. The Mumbai Bench of the National Company Law Tribunal
  • B. The Securities Appellate Tribunal at Mumbai
  • C. The Bombay High Court
  • D. The Supreme Court of India at New Delhi

Q5. With reference to a caveat lodged under Section 148A of the Code of Civil Procedure, 1908, consider the following statements: 1. It may be lodged by any person claiming a right to appear before the court at the hearing of an application that has been made, or is expected to be made, in a suit or proceeding. 2. The caveator is required to serve notice of the caveat, by registered post with acknowledgement due, on the person by whom the application has been or is expected to be made. 3. Once a caveat is lodged, the court is barred from passing any interim order in the matter until the caveator has been impleaded as a party to the suit. 4. A caveat, once lodged, remains in force for one year from the date of its lodging unless the application concerned is made before that period expires. Which of the statements given above is/are correct?

  1. It may be lodged by any person claiming a right to appear before the court at the hearing of an application that has been made, or is expected to be made, in a suit or proceeding.
  2. The caveator is required to serve notice of the caveat, by registered post with acknowledgement due, on the person by whom the application has been or is expected to be made.
  3. Once a caveat is lodged, the court is barred from passing any interim order in the matter until the caveator has been impleaded as a party to the suit.
  4. A caveat, once lodged, remains in force for one year from the date of its lodging unless the application concerned is made before that period expires.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1, 3 and 4
  • D. 2 and 4

Q6. Under the revised glide path prescribed by the Reserve Bank of India, what is the minimum Net Owned Fund that an NBFC–Investment and Credit Company must attain by 31 March 2027, failing which it shall not be eligible to hold its Certificate of Registration?

  • A. ₹2 crore
  • B. ₹5 crore
  • C. ₹7 crore
  • D. ₹10 crore

Q7. Which one of the following correctly describes the ownership structure of the entity that serves as the principal holding company of the Tata group?

  • A. Philanthropic trusts led by the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust hold about two-thirds of it, while the Shapoorji Pallonji family holds roughly 18 per cent
  • B. The Shapoorji Pallonji family holds about two-thirds of it, while the philanthropic Tata Trusts together hold roughly 18 per cent of the equity
  • C. Tata Consultancy Services holds a controlling majority in it, with the residual equity held by the Shapoorji Pallonji family and group employee trusts
  • D. It is a wholly-owned subsidiary of Tata Industries Limited, which is in turn owned by the Tata Trusts and the group's operating companies