Multiple choice general knowledge

Foreign entities individually or collectively either as a sponsor or as a depository participant or as a sponsor and depository participant together cannot hold more than __% of the equity capital of a depository:

  1. 30

  2. 50

  3. 20

  4. 25

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

As per SEBI guidelines, foreign entities cannot hold more than 20% of the equity capital of a depository, whether individually or collectively as sponsors or depository participants. This cap ensures that depositories remain predominantly Indian-owned and controlled.