17 Questions
Who can be considered part of the dominant promoter group for an unlisted corporate trading member?
A person holding 51% of shares in the trading member on his own
Which of the following is NOT a condition under which a corporate trading member can constitute a dominant promoter group?
Being a bank shareholder
What is the role of strategic investors in constituting a dominant promoter group?
They add value and assist in raising additional capital
Which individuals can be considered part of the dominant promoter group alongside a person holding 51% shares?
Relatives and individuals defined under SEBI regulations
What is the significance of the 51% shareholding in constituting a dominant promoter group?
It signifies control over the corporate trading member
Which of the following is NOT a type of entity mentioned as part of the norms relating to dominant promoters?
Individual traders
Who can be identified as the dominant promoter group for a listed corporate trading member?
Any person identified as promoter in the shareholding pattern disclosure or offer documents
When can a corporate shareholder be identified as a dominant shareholder of a corporate trading member?
If they identify any person as their dominant promoter group as per the norms
What is required for a corporate trading member to constitute a dominant promoter group?
Identifying any person identified as promoter in the offer document or shareholding pattern disclosure
In what cases can the dominant promoter group consist of more than one corporate shareholder?
If each corporate shareholder identifies their own separate dominant promoter group
What action should a corporate shareholder take to be considered part of the Dominant Promoter Group (DPG) for a corporate trading member?
Identifying any person or persons as their dominant promoter group following the applicable norms
What is the minimum percentage of controlling stake that a promoting foreign entity must hold in the applicant company for trading membership?
51%
Which of the following does 'control' refer to in the context of the dominant promoter group?
Right to appoint majority of directors
What is the minimum net worth required for the entity having controlling stake in the applicant company or the promoting foreign entity?
Rs. 50 Crores
Under what conditions are corporate trading members allowed to change their shareholding pattern?
As long as existing Dominant Promoter Group retains controlling interest
Who has to approve any changes in the shareholding pattern of corporate trading members?
Prior approval from the Exchange
What must be maintained by an identified Dominant Promoter Group (DPG) throughout its association with the Exchange?
Controlling interest
Test your knowledge on the norms relating to dominant promoters in different categories like unlisted corporate trading member, listed corporate trading member, corporate shareholders, banks, government owned finance institutions and foreign entities. Explore the conditions that determine eligibility for a corporate trading member to constitute dominant promoters.
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