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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).

 

Test Details:

Name of Module: NISM-Series-VI: Depository Operations Certification Examination

Fees (Rs.) Test Duration (in minutes) No. of Questions Maximum Marks Pass Marks* (%) Certificate # Validity (in years)
1500+ 120 100 100 60 3

 

* Negative marking – 25% of the marks assigned to the question.
+ Payment gateway charges extra.
# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details

 

Nism Depository Operations Syllabus

 

I. Introduction to the Capital Market

A. Introduction to the capital market

B. Structure of capital market

C. Regulatory environment in Indian capital market

D. Regulators in the Indian capital market

II. Introduction to Depository

A. Need for a depository system

B. Depository as a market participant

C. Legal framework in which the depositories function in India

D. Functions of a depository

III. Depository and its Business Partners

A. Depository participants (DPs)

B. Clearing corporation/Clearing house

C. Issuers and RTAs

IV. Functions of Depository Participant -Account Opening

A. Types of demat account a person can open with a DP

B. Beneficiary account

C. Clearing member account

D. Closure of account

E. Freezing of account

F. Procedure and documentation for changes in client details

V. Functions of Depository Participant – Transmission and Nomination

A. Transmission of shares

B. Nomination of shares

C. Process of transmission of securities held with or without nomination and jointly

VI. Functions of Depository Participant -Dematerialization

A. International Securities Identification Number (ISIN)

B. Process of dematerialization

C. Process of rematerialisation

VII. Functions of Depository Participant -Trading and Settlement

A. Role of DP in facilitating the transfer of securities

B. Off-Market transactions

C. Market transactions

D. Inter-Depository transfers

VIII. Pledge and Hypothecation

A. Concept of pledge and hypothecation

B. Procedure for pledge and hypothecation

IX. Corporate Action

A. Corporate Actions

B. Procedure for Corporate Action w.r.t monetary benefits

C. Procedure for Corporate Action w.r.t non-monetary benefits

D. Procedure for Corporate Action w.r.t rights issue

E. Procedure for Corporate Action w.r.t mergers and amalgamations

F. Procedure for Corporate Action w.r.t monetary benefits

G. Procedure for Corporate Action w.r.t interest payment on debt securities

X. Public Issues

A. Role of DP in the process of public issues

XI. Debt Instruments and Government Securities

A. Debt instruments and government securities

B. Certificate of deposit (CDs)

C. Commercial paper

D. Government securities

XII. Foreign Portfolio Investor

A. Eligibility Criteria of Foreign Portfolio Investors (FPI)

B. Categories of FPI

C. Eligibility Criteria and Engagement of Designated Depository Participant (DPP)

XIII. Rajiv Gandhi Equity Saving Schemes

A. Procedure for opening an account to invest in RGESS

XIV. Basic Services Demat Account (BSDA)

A. Features of BSDA

B. Eligibility conditions required for opening BSDA