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NISM Certifications · Paper VI

NISM-Series-VI Depository Operations Exam Preparation Guide

NISM-Series-VI Depository Operations is a computer-based multiple choice exam on how depositories, depository participants and investors work in India. It has 100 questions, 100 marks, 2 hours, a 60% pass mark and 25% negative marking. Prepare by learning rules, forms and process steps exactly, then practise timed mock tests.

NISM-Series-VI tests whether you can run depository operations correctly. It covers the capital market background, the role of depositories (NSDL and CDSL), depository participants (DPs), account opening and operations, transmission, nomination, dematerialisation, trading and settlement, pledge, corporate actions, debt and government securities, FPIs and investor services.

The exam is 100 multiple choice questions for 100 marks in 2 hours. The pass mark is 60%, and each wrong answer carries negative marking of 25% of the marks for that question. NISM publishes the syllabus in a workbook, and the questions follow that workbook closely. Check the latest NISM candidate information for any change before you book.

Most questions are factual. They ask who does what, which document is needed, what happens next in a process, or which statement is correct. Students who read the workbook once usually find the general ideas easy but lose marks on exact details, such as who can sign, which form applies or how a step is sequenced. Strong scorers treat the paper as a process exam. They can walk through each procedure from start to finish and spot the option that breaks a rule.

NISM-Series-VI: Depository Operations: chapters and topics

Introduction to the Indian Capital Market

Introduction to Depository

Depository and its Business Partners

Functions of Depository Participant - Account Opening

Functions of Depository Participant - Account Operations

Functions of Depository Participant - Transmission and Nomination

Functions of Depository Participant - Dematerialisation

Functions of Depository Participant - Trading and Settlement

Special Services - Pledge and Hypothecation

Special Services - Public Offering / Corporate Actions

Special Services - Debt Instruments and Government Securities

Foreign Portfolio Investors (FPI)

Investor Services (NISM VI)

How to prepare NISM-Series-VI: Depository Operations

Plan for several short, regular study sessions rather than one long push. The paper rewards exact recall of procedures, so repeat and test often. Use the latest NISM workbook as your main source.

  1. Read the syllabus and the chapter list once. Note that account operations, dematerialisation, trading and settlement, and special services are process-heavy, so give them more time than the introductory chapters.
  2. Start with the capital market and depository basics. Be able to explain in a line each what a depository, a depository participant, an issuer, a registrar and a clearing corporation do, and how they connect.
  3. Study each DP function as a flow. For account opening, operations, transmission, nomination and dematerialisation, write the steps in order and list the documents and checks at each stage. Then cover your notes and rewrite the flow from memory.
  4. Build a one-page fact sheet for each chapter with defined terms, who is authorised to do what, and any limits, forms or timelines the workbook states. Copy these exactly as given in the workbook. Do not rely on memory or guesses.
  5. Study trading, settlement, pledge, hypothecation, corporate actions, debt instruments, government securities and FPIs by comparing similar items. Ask what differs between pledge and hypothecation, or between a corporate action benefit and a normal transfer, so you can pick the right option when choices look alike.
  6. After each chapter, attempt 20 to 30 practice questions. For every wrong answer, write down the rule you missed and which trap option you chose. Review this error list before each new session.
  7. In the last two to three weeks, take full-length timed mock tests of 100 questions in 2 hours. Apply negative marking to your scores so you learn when to skip.
  8. In the final days, revise only fact sheets, flow notes and your error list. Do not start new sources. Sleep well and confirm your test centre, slot and ID requirements.

Time management in the exam

  • You have 2 hours for 100 questions, which is about 70 seconds per question. Many questions are short recall, so you can bank time for the harder ones.
  • Do a first pass and answer everything you are sure of quickly. Mark doubtful questions for review instead of stalling on them.
  • Because a wrong answer costs 25% of the marks, guess only when you can eliminate at least one or two options. If you have no idea, leave it blank.
  • Read the stem for words like not, except, only, always and first. These change the correct answer and cause many lost marks.
  • For process questions, mentally run the steps in order and check which option breaks the sequence.
  • Keep the last 10 to 15 minutes for reviewing marked questions and checking that you have not left easy ones unanswered by mistake.

Mistakes that cost marks in NISM-Series-VI: Depository Operations

  • Reading the workbook once and skipping practice tests

    Fix: Take chapter-wise and full mock tests. Track errors and revisit the rule behind each one.

  • Mixing up the roles of depository, DP, issuer and registrar

    Fix: Make a table in your notes of each party and its specific duties. For each process, say which party acts at each step.

  • Memorising steps without the order

    Fix: Practise writing each process as a sequence, such as dematerialisation or transmission, from request to completion.

  • Confusing similar concepts such as pledge and hypothecation

    Fix: Write the key difference for each pair in one line and test yourself on it before every mock.

  • Guessing blindly under negative marking

    Fix: Guess only after eliminating options. Practise this on mocks with negative marking applied.

  • Ignoring smaller chapters like FPIs and investor services

    Fix: Cover every chapter at least twice. These topics often give straightforward marks from definitions and procedures.

NISM-Series-VI: Depository Operations: frequently asked questions

What is the pass mark for NISM-Series-VI Depository Operations?

The pass mark is 60%. The exam has 100 questions for 100 marks and lasts 2 hours.

Is there negative marking in NISM-Series-VI?

Yes. A wrong answer costs 25% of the marks assigned to that question. Unanswered questions carry no penalty.

How long is the NISM-Series-VI certificate valid?

A NISM certificate is valid for 3 years from the date of the examination. Check NISM for renewal requirements before it expires.

Which chapters should I focus on most?

Give extra time to the depository participant functions: account opening, account operations, transmission and nomination, dematerialisation, and trading and settlement. They are process-based and need exact recall. Still revise every chapter, since all can be tested.

Where do I take the NISM-Series-VI exam?

It is a computer-based test. You book a test centre, date and time slot of your choice through NISM.