Tata Motors Passenger Vehicles Ltd informed the exchanges in a BSE filing on August 21, 2026, that it had received an RBI compounding order directing it to pay ₹2 lakh for a historical non-compliance under foreign exchange regulations.

The Reserve Bank of India’s Foreign Exchange Department in Mumbai issued the order on August 20, 2026. The matter concerned Regulation 5(1) of the Foreign Exchange Management (Transfer and Issue of any Foreign Security) Regulations, 2004.

Order relates to 2015 overseas investment structure

According to the company, the non-compliance arose from the creation of an ODI-FDI structure in 2015 without obtaining prior RBI approval. The structure involved an indirect holding in a step-down subsidiary in India through a foreign entity in which an overseas direct investment had been made.

Tata Motors Passenger Vehicles said it had filed an application seeking compounding of the non-compliance under the Foreign Exchange Management Act, 1999, and the regulations framed under it. Compounding provides for the resolution of an admitted contravention through payment of the amount specified by the authority.

  • The underlying overseas investment was made in 2015.
  • The investment was subsequently divested in March 2022.
  • The historical ODI-FDI structure ceased to exist in March 2022.
  • The company is in the process of paying the ₹2 lakh compounding amount.

Company reports no material impact

The filing stated that the underlying investment is no longer held by Tata Motors Passenger Vehicles and that the order resolves a historical FEMA compliance matter. The company said there is no material impact on its financial, operational or other activities because of the RBI order.

The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Tata Motors Passenger Vehicles, formerly Tata Motors Limited, submitted the intimation to BSE Limited and the National Stock Exchange of India.

The filing was signed by Maloy Kumar Gupta, Company Secretary and Chief Legal Officer.

Source: BSE corporate announcement.