NISM Series-VI: Depository Operations Practice Exam
The NISM Series-VI: Depository Operations Certification Examination is designed to assess your knowledge and understanding of the Indian depository system and its operations. Earning this certification demonstrates your competency in handling depository-related tasks and effectively serving clients who invest in dematerialized securities.
Who Should Take This Exam?
This NISM Series-VI exam is ideal for individuals working in the securities market, particularly those involved in:
- Depository Participants (DPs): Employees handling client accounts, account opening, transactions, and other depository services.
- Stock Brokers & Investment Advisors: Professionals dealing with dematerialized securities and interacting with DPs on behalf of clients.
- Custodian Banks: Individuals managing client securities held in electronic form within the depository system.
There are no formal prerequisites for taking the exam. However, a basic understanding of the Indian securities market and depository operations would be beneficial.
Exam Details
- Negative Marking: 25% of the marks assigned to a question for incorrect answers
- Delivery Method: Online proctored exam
- Duration: 120 minutes (2 hours)
- Passing Score: Minimum passing score is 60% (after accounting for negative marking)
- Validity: The certification is valid for three years.
Examination Objectives
On successful completion of the examination the candidate should:
- Know the basics of the Indian securities market and the depository system, the need for depository and the key features of the depository system in India.
- Understand the institutional structure of the depository system in India and the business partners of a depository.
- Understand the regulatory framework in which the depositories and its DPs function, their eligibility criteria, registration procedure, rights and obligations etc.
- Know the various functions of the Depository and its Depository Participants (DPs) such as dematerialisation, trading and settlement, pledging and hypothecation.
- Understand how a demat account is opened, documents required to open an account and significance of Power of Attorney (POA).