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About Depository
A location or organization that keeps financial securities in a dematerialized form is referred to as a depository. A depository is any bank, group, or entity that holds securities and provides support for security trading. Similar to how bank accounts keep money, depository accounts also hold securities.
Why is Depository important?
In addition to keeping your money secure, a depository could also give you interest. Time deposits, such as certificates of deposits, often offer the highest interest rates (CDs). Due to the bank's assurance that it will have access to your funds until they mature, time deposits pay a little bit higher interest.
Who should take the Depository Exam?
Depository Certification Course Outline
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The exam generally includes multiple-choice questions, case-based scenarios, and occasionally short descriptive questions to assess conceptual understanding and practical application.
There are no strict prerequisites, but candidates are expected to have a basic understanding of financial markets and securities trading systems.
The exam duration typically ranges from 90 minutes to 2 hours, depending on the administering body and exam format.
Topics such as dematerialization, account opening procedures, settlement cycles, and regulatory compliance generally carry the most weight in the exam.
No, the exam is also relevant for those in brokerage, banking, custodianship, and compliance roles that require knowledge of depository operations.
Yes, most exam syllabi include a module on global depositories like DTCC, Euroclear, and Clearstream to provide comparative insights.
Yes, the certification is widely recognized by financial institutions, brokerage firms, and regulatory bodies as proof of expertise in post-trade operations.
The passing score typically ranges between 60% and 70%, based on the standards of the certifying authority.
Yes, candidates are expected to be aware of recent changes in laws and regulations related to depositories and market practices.
Candidates should thoroughly review the official syllabus, study regulatory guidelines, practice mock tests, and stay updated on operational and technological developments in the securities depository ecosystem.