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NISM Series VI: Depository Operations exam preparation
How depositories, depository participants and demat accounts work: opening, transfer, pledge, settlement, corporate actions and debt.
NISM Series VI exam pattern
NISM Series VI syllabus, unit by unit
The exam covers 12 units. The percentage is the share of questions each unit usually carries, so spend your time in that proportion.
Unit 1 Introduction to securities market5%
The market that the depository system serves: what securities are, who issues and trades them, and who regulates the market.
- Primary and secondary markets.
- Market participants.
- Role of SEBI.
- Rolling settlement.
Unit 2 Introduction to depository10%
Why depositories exist, the law behind them, and how holding securities electronically differs from holding certificates.
- Problems of physical securities.
- Depositories Act, 1996.
- NSDL and CDSL.
- Beneficial owner and registered owner.
Unit 3 Depository and its business partners12%
Who the depository works with: depository participants, issuers, registrars, clearing corporations and exchanges, and how DPs are admitted and supervised.
- Who can become a DP.
- Depository participant functions.
- Issuer and registrar.
- Clearing corporation and clearing member.
Unit 4 Functions of DP: account opening12%
How a demat (beneficial owner) account is opened: forms, KYC, documents, types of accounts, statements and closure.
- Account opening process.
- KYC and PAN.
- Types of accounts.
- Statements and tariff.
Unit 5 Functions of DP: transmission and nomination5%
What happens to securities on the death of a holder: nomination, transmission, and the documents needed.
- Nomination.
- Transmission.
- Joint holders.
- Documents.
Unit 6 Functions of DP: dematerialisation9%
Converting physical certificates into electronic holdings and back again.
- Demat process.
- Remat.
- ISIN.
- Physical share transfer rules.
Unit 7 Functions of DP: trading and settlement12%
How securities move after a trade: on-market and off-market transfers, delivery instructions, pay-in and pay-out, and the settlement cycle.
- Delivery instruction slip.
- On-market and off-market.
- Pay-in and pay-out.
- T+1 settlement.
Unit 8 Functions of DP: pledge and hypothecation10%
Using securities as collateral for loans and margins, while they stay in demat form.
- Pledge cycle.
- Hypothecation.
- Margin pledge.
- Invocation and closure.
Unit 9 Functions of DP: corporate actions5%
How benefits like dividends, bonus and splits reach demat accounts.
- Record date.
- Cash and non-cash benefits.
- Rights and buyback.
Unit 10 Functions of DP: public issues5%
How investors apply for public issues and receive shares in the demat account.
- IPO in demat.
- ASBA and UPI.
- Allotment and credit.
- Role of the DP.
Unit 11 Functions of DP: debt and government securities10%
Holding and trading debt securities and government securities in electronic form.
- Government securities.
- Treasury bills.
- Debt in demat.
- Retail Direct.
Unit 12 Additional services: FPI and basic services demat account5%
Two smaller topics: how foreign portfolio investors hold securities, the Rajiv Gandhi Equity Savings Scheme, and the low-cost basic services demat account.
- FPI holding limits.
- BSDA eligibility and charges.
Try 4 sample questions
These are from Mock 1. Open the free mock to see the correct answer and the reason behind each one.
Q1. Which term is described here? Nomination lets an account holder name a person who will receive the securities if the holder dies.
- Nomination
- Demat request form
- Market intermediaries
- Inter-depository transfer
Q2. Which statement best describes “Registered owner”?
- Government securities (G-secs) are debt instruments issued by the central or state governments, and they carry the lowest credit risk.
- In the issuer's books the depository appears as the registered owner of dematerialised securities but holds them for the beneficial owner.
- Securities may be delivered at the usual pay-in time or earlier, called early pay-in, and the DP processes instructions before the deadline.
- SEBI does not permit the transfer of listed securities in physical form, other than for transmission and transposition, so securities must be dematerialised before transfer.
Q3. Which statement best describes “Inspection and supervision”?
- An issuer is the company or body that issues securities and may offer them in demat form through the depository.
- Clients give securities as margin to brokers by creating a margin pledge in favour of the clearing member, and the clearing member may re-pledge them to the clearing corporation.
- Depositories inspect DPs, monitor compliance and can take action for violations, and SEBI oversees the system.
- A DP must keep investors' securities separate from its own and cannot use client securities for its own benefit.
Q4. Which statement best describes “Types of accounts”?
- Demat accounts may be opened by individuals, joint holders, HUFs, companies, trusts, NRIs and minors through a guardian.
- Debt securities such as debentures and bonds are instruments by which an issuer borrows and pays interest, and can be held in demat form.
- An off-market transfer is a transfer of securities directly between two BOs without a trade on an exchange, such as a gift or family transfer.
- The registrar verifies the request and certificates, cancels them, confirms to the depository, and the depository credits the account.
How to prepare for NISM Series VI
- Download the study guide and read the first three pages.
- Study the biggest units first. Their weight shows on this page.
- Take Mock 1 after one pass through the guide.
- Move to the next mock only when you clear the pass mark by 15 marks.
- Redo every wrong answer. Each one names its unit.
The app also lists your weak units after each mock and runs in English, Hindi or Gujarati. Mock tests and study material are in English.
Frequently asked questions
How many questions are there in NISM Series VI?
The NISM Series VI (Depository Operations) exam has 100 multiple-choice questions carrying 100 marks, to be answered in 120 minutes.
What is the passing score for NISM Series VI?
The pass mark is 60%. Aim to clear 75% in practice mocks before you book the real exam.
Is there negative marking in NISM Series VI?
Yes. The negative marking is 25% of marks. Practise leaving a question blank when you are unsure.
Is the NISM Series VI study guide free?
Yes. UpperCrust Academy gives a free 34-page study guide PDF for NISM Series VI, written unit by unit.
Are the NISM Series VI mock tests free?
Yes. You get 5 full-length mock tests with the answer and the reason for every question. Sign in once with your mobile number or Google to start.
Is this affiliated with NISM?
No. UpperCrust Academy is independent preparation material from UpperCrust Wealth. Confirm the latest syllabus and exam rules on the official NISM website.
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UpperCrust Academy is independent study material from UpperCrust Wealth. It is not affiliated with NISM, SEBI or AMFI. For education only. Not investment advice. Always confirm the latest syllabus and rules on the official NISM website.