Depository Operations Certification Examination

Depository Operations Certification Overview

The examination seeks to create a common minimum knowledge benchmark for associated persons engaged or employed by a registered depository participant in (a) dealing or interacting with clients, (b) dealing with securities of clients, (c) handling redressal of investor grievances, (d) internal control or risk management, (e) activities having a bearing on operational risk, or (f) maintenance of books and records pertaining to the above activities.

The certification aims to enhance the quality of services as rendered by the Depository Participants. 

  • 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).


Depository Operations Certification Fees 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.

CHAPTER-1: Introduction to the Capital Market

  • Introduction to the capital market
  • Structure of capital market
  • Regulatory environment in Indian capital market
  • Regulators in the Indian capital market

CHAPTER-2: Introduction to Depository

  • Need for a depository system
  • Depository as a market participant
  • Legal framework in which the depositories function in India
  • Functions of a depository

CHAPTER-3: Depository and its Business Partners

  • Depository participants (DPs)
  • Clearing corporation/Clearing house
  • Issuers and RTAs

CHAPTER-4: Functions of Depository Participant -Account Opening

  • Types of demat account a person can open with a DP
  • Beneficiary account
  • Clearing member account
  • Closure of account
  • Freezing of account
  • Procedure and documentation for changes in client details

CHAPTER-5: Functions of Depository Participant – Transmission and Nomination

  • Transmission of shares
  • Nomination of shares
  • Process of transmission of securities held with or without nomination and jointly

CHAPTER-6: Functions of Depository Participant -Dematerialization

  • International Securities Identification Number (ISIN)
  • Process of dematerialization
  • Process of rematerialisation

CHAPTER-7: Functions of Depository Participant -Trading and Settlement

  • Role of DP in facilitating the transfer of securities
  • Off-Market transactions
  • Market transactions
  • Inter-Depository transfers

CHAPTER-8: Pledge and Hypothecation

  • Concept of pledge and hypothecation
  • Procedure for pledge and hypothecation

CHAPTER-9: Corporate Action

  • Corporate Actions
  • Procedure for Corporate Action w.r.t monetary benefits
  • Procedure for Corporate Action w.r.t non-monetary benefits
  • Procedure for Corporate Action w.r.t rights issue
  • Procedure for Corporate Action w.r.t mergers and amalgamations
  • Procedure for Corporate Action w.r.t monetary benefits
  • Procedure for Corporate Action w.r.t interest payment on debt securities

CHAPTER-10: Public Issues

  • Role of DP in the process of public issues

CHAPTER-11: Debt Instruments and Government Securities

  • Debt instruments and government securities
  • Certificate of deposit (CDs)
  • Commercial paper
  • Government securities

CHAPTER-12: Foreign Portfolio Investor

  • Eligibility Criteria of Foreign Portfolio Investors (FPI)
  • Categories of FPI
  • Eligibility Criteria and Engagement of Designated Depository Participant (DPP)

CHAPTER-13: Rajiv Gandhi Equity Saving Schemes

  • Procedure for opening an account to invest in RGESS

CHAPTER-14: Basic Services Demat Account (BSDA)

  • Features of BSDA
  • Eligibility conditions required for opening BSDA