Depository Operations
Depository participant operations — DEMAT account, settlement, pledge & hypothecation, and NSDL/CDSL processes.
Exam Pattern & Marking
Detailed Syllabus
13 chapters · 100 total marks
| # | Chapter | Marks | Practice Qs |
|---|---|---|---|
| 1 | VI Trading and Settlement | 13 | 65 |
| 2 | VI Depository and its Business Partners | 12 | 60 |
| 3 | VI Functions of DP Account Opening | 12 | 60 |
| 4 | VI Debt Instruments and Government Securities | 10 | 50 |
| 5 | VI Introduction to Depository | 10 | 50 |
| 6 | VI Pledge and Hypothecation | 10 | 50 |
| 7 | VI Dematerialisation | 9 | 45 |
| 8 | VI Public Offering and Corporate Actions | 7 | 35 |
| 9 | VI Introduction to the Indian Capital Market | 5 | 25 |
| 10 | VI Transmission and Nomination | 5 | 25 |
| 11 | VI Functions of DP Account Operations | 3 | 15 |
| 12 | VI Foreign Portfolio Investors | 2 | 10 |
| 13 | VI Investor Services | 2 | 10 |
| Total | 100 | 500 |
Marks per chapter reflect the official NISM syllabus weightage. Practice question counts show the bank size in our app — use them to gauge depth of preparation needed per chapter.
Key Knowledge Areas
Overview
Series VI is mandatory for staff at depository participants (DPs) — the brokers and banks that maintain investor demat accounts at NSDL or CDSL. It covers the full depository workflow: account opening, dematerialisation, transactions, settlement, pledge, and corporate actions.
At a glance: 100 questions · 2 hours · 60% pass mark · 0.25 negative marking · ₹1,500 + GST.
Who should take VI
- DP staff at brokers / banks running demat services
- Operations and compliance officers at DPs
- Anyone applying for the “Compliance Officer of DP” SEBI registration
Key Knowledge Areas
Depository structure in India
Two depositories operate under SEBI regulation:
| Depository | Promoters | Established |
|---|---|---|
| NSDL | NSE, IDBI Bank, UTI | 1996 |
| CDSL | BSE, banks | 1999 |
Both maintain electronic records of dematerialised securities. DPs (depository participants) are intermediaries giving investors access to depositories.
DEMAT account workflow
Account opening: KYC + DP-Investor agreement + nomination → BO ID issued.
Dematerialisation: Submit physical certificates + DRF → DP forwards to issuer → certificates cancelled, electronic credit to BO account.
Re-materialisation: Reverse process — request electronic balance be converted back to physical.
Transmission: Securities transfer on death — needs death certificate, succession certificate / will, prescribed form.
Settlement
Pay-in: Selling member delivers securities to clearing corporation by T+1 morning. Pay-out: Clearing corp credits buyer’s demat account same day evening.
Key Fact: Auto pay-in and auto pay-out automate settlement movements without daily DIS slips. Most retail demat accounts now use this.
Pledge & hypothecation
A pledge instruction freezes securities in pledgor’s account in favour of pledgee. On redemption / margin satisfaction, pledge is unfrozen. Margin pledge for trading is a SEBI-approved variant from 2020.
Corporate actions on demat
Bonus issues, splits, dividends, rights, mergers — all credited automatically based on record date demat balances. No physical certificate movement.
Exam Tips
Tip 1: DEMAT operations procedures and timelines are exam-favourites. Know how long demat takes (15-30 days), pledge release timelines, transmission process steps.
Tip 2: Distinguish NSDL and CDSL features but don’t memorise minor differences — most procedures are common.
Tip 3: SEBI Depositories Act 1996 and bye-laws come up. Know the key sections governing rights of beneficial owners.
Tip 4: Margin pledge (introduced 2020) is recent and frequently asked. Understand how it differs from traditional pledge.
Try the Free Quiz
Test your knowledge with our free Series VI practice quiz — or get the full bank of 500+ VI questions plus mock tests in the NISM Exam Prep app.
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