Dominant Promoters Norms in Different Categories Quiz

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Who can be considered part of the dominant promoter group for an unlisted corporate trading member?

A neighbor of the corporate trading member

A person who has no relation to the trading member

A random individual from the same city as the trading member

A person holding 51% of shares in the trading member on his own (correct)

Which of the following is NOT a condition under which a corporate trading member can constitute a dominant promoter group?

Having support from strategic investors

Being a bank shareholder (correct)

Holding 51% shares in the trading member on their own

Having personal ties with industry investors

What is the role of strategic investors in constituting a dominant promoter group?

They solely control the trading member

They are required to hold 51% shares

They have no influence in this process

They add value and assist in raising additional capital (correct)

Which individuals can be considered part of the dominant promoter group alongside a person holding 51% shares?

Relatives and individuals defined under SEBI regulations Signup and view all the answers

What is the significance of the 51% shareholding in constituting a dominant promoter group?

It signifies control over the corporate trading member Signup and view all the answers

Which of the following is NOT a type of entity mentioned as part of the norms relating to dominant promoters?

Individual traders Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

What is the minimum percentage of controlling stake that a promoting foreign entity must hold in the applicant company for trading membership?

51% Signup and view all the answers

Which of the following does 'control' refer to in the context of the dominant promoter group?

Right to appoint majority of directors Signup and view all the answers

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 Signup and view all the answers

Under what conditions are corporate trading members allowed to change their shareholding pattern?

As long as existing Dominant Promoter Group retains controlling interest Signup and view all the answers

Who has to approve any changes in the shareholding pattern of corporate trading members?

Prior approval from the Exchange Signup and view all the answers

What must be maintained by an identified Dominant Promoter Group (DPG) throughout its association with the Exchange?

Controlling interest Signup and view all the answers

Dominant Promoters Norms in Different Categories Quiz

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