PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free NISM Series VI (Depository Operations) Practice Questions

Pass your NISM-Series-VI: Depository Operations Certification Examination exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More NISM Certifications (India)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

NISM Series I Currency Derivatives

Practice Questions

NISM Series II-A Registrars and Transfer Agents (Corporate)

Practice Questions

NISM Series II-B Registrars and Transfer Agents (Mutual Fund)

Practice Questions

NISM Series III-A Securities Intermediaries Compliance (Non-Fund)

Practice Questions

NISM Series III-C Securities Intermediaries Compliance (Fund)

Practice Questions

NISM Series IV Interest Rate Derivatives

Practice Questions
2026 Statistics

Key Facts: NISM Series VI (Depository Operations) Exam

100 questions

NISM Series VI has 100 multiple-choice questions

NISM Series VI Assessment Structure

2 hours

The exam duration is 120 minutes

NISM Series VI Assessment Structure

60% pass

Candidates must score 60 out of 100 marks to pass

NISM Series VI FAQ

25% negative marking

Each incorrect answer carries a penalty of 0.25 marks

NISM Series VI Assessment Structure

Rs. 1,500

The exam registration fee is Rupees one thousand five hundred (plus GST)

NISM Series VI Portal

3 years

The Depository Operations certificate is valid for 3 years

NISM Series VI Certification Page

13 chapters

The syllabus covers 13 chapters across depository processes

NISM Series VI Curriculum

100

Free original practice questions available here

OpenExamPrep

NISM-Series-VI (Depository Operations) is a SEBI-mandated certification from the National Institute of Securities Markets for professionals working in depository participant operations. The exam has 100 one-mark multiple-choice questions to be completed in 2 hours, with a 60% passing score and negative marking of 25% per wrong answer. The fee is Rs. 1,500 and the certificate is valid for 3 years. The syllabus covers the entire range of depository operations, from account opening (12%) and trading/settlement (13%) to pledge/hypothecation (10%) and corporate actions (7%). This 100-question practice bank provides comprehensive prep with detailed explanations.

Sample NISM Series VI (Depository Operations) Practice Questions

Try these sample questions to test your NISM Series VI (Depository Operations) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the primary economic function of securities markets in India?
A.To guarantee fixed returns to all investors
B.To channelise surplus funds from savers to users of capital
C.To fix the prices of all listed corporate debentures
D.To replace the banking system entirely as a credit provider
Explanation: The primary economic function of the securities market is to facilitate the transfer of resources from savers (investors) to users of capital (issuers like corporates or governments) for productive investment.
2In which market does an issuer sell newly created securities to investors for the first time?
A.Secondary Market
B.Primary Market
C.Money Market
D.Commodity Market
Explanation: The primary market is the channel through which companies raise capital by issuing new securities to the public, such as through an Initial Public Offering (IPO) or rights issue.
3Which regulatory body was established under an Act of Parliament to protect the interests of investors in securities and to promote and regulate the securities market in India?
A.Reserve Bank of India (RBI)
B.Securities and Exchange Board of India (SEBI)
C.Insurance Regulatory and Development Authority (IRDAI)
D.Ministry of Finance
Explanation: SEBI is the statutory regulatory body established under the SEBI Act, 1992, with the mandate to protect investors, develop the securities market, and regulate market intermediaries.
4Which of the following is a primary characteristic of money market instruments in India?
A.They represent long-term equity ownership in public firms
B.They are highly liquid debt instruments with maturities of up to one year
C.They are exclusively issued by foreign portfolio investors
D.They are tradeable contracts that derive their value from underlying indices
Explanation: Money market instruments are highly liquid debt instruments with short maturities of up to one year, such as Commercial Paper, Certificates of Deposit, and Treasury Bills.
5Which market intermediary acts as a principal in trades, holds securities in its own name, and helps maintain liquidity by offering bid and ask quotes?
A.Merchant Banker
B.Market Maker
C.Depository Participant
D.Registrar and Transfer Agent
Explanation: A market maker provides liquidity to the market by continuously quote-offering both buy and sell prices (bid/ask) for specific securities, trading on their own account.
6Under the depository system in India, which analogy best explains the relationship between a depository and a bank?
A.A depository is to securities what a bank is to cash
B.A depository is to land registration what a bank is to tax collection
C.A depository is to loan underwriting what a bank is to venture capital
D.A depository is to insurance policies what a bank is to currency printing
Explanation: Just as a bank holds funds in accounts for depositors and facilitates electronic transfers of money, a depository holds securities (shares, debentures) in electronic dematerialised accounts for investors and transfers them electronically.
7Which legislation passed by the Indian Parliament established the legal framework for the setting up and operationalisation of depositories in India?
A.The Companies Act, 2013
B.The Depositories Act, 1996
C.The Securities Contracts (Regulation) Act, 1956
D.The SEBI Act, 1992
Explanation: The Depositories Act, 1996, is the primary legislation that paved the way for the establishment of depositories (like NSDL and CDSL) and introduced electronic dematerialisation in India.
8Which of the following is a major benefit of the depository system to a retail investor in India?
A.Guarantees that stock prices will only move upwards
B.Elimination of risks associated with physical certificates such as bad delivery, loss in transit, and forgery
C.Exemption from paying all income tax on capital gains
D.Automatic execution of buy and sell trades without investor authorization
Explanation: By holding securities in electronic form, the depository system eliminates physical certificate risks such as loss, theft, mutilation, forgery, bad delivery, and signature mismatch.
9Identify the two operational depositories registered with SEBI in India.
A.NSE and BSE
B.NSDL and CDSL
C.RBI and NABARD
D.MCX and NCDEX
Explanation: National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) are the two SEBI-registered operational depositories in India.
10Which promoter institutions established the National Securities Depository Limited (NSDL) as the first depository in India?
A.State Bank of India and Life Insurance Corporation
B.IDBI, UTI, and National Stock Exchange (NSE)
C.Bombay Stock Exchange and Bank of India
D.Reserve Bank of India and Ministry of Finance
Explanation: NSDL was promoted by Industrial Development Bank of India (IDBI), Unit Trust of India (UTI), and the National Stock Exchange (NSE) in 1996.

About the NISM Series VI (Depository Operations) Exam

NISM-Series-VI: Depository Operations Certification Examination is a SEBI-mandated certification administered by the National Institute of Securities Markets. It is the requisite standard for associated persons of registered Depository Participants (DPs) who handle customer interface, account opening, account operations, dematerialisation and rematerialisation, pledge and hypothecation, corporate actions, and transaction settlements. The syllabus covers the structure of the Indian securities market; basic concepts of the depository system under the Depositories Act, 1996; the roles of DPs, RTAs, Clearing Corporations, Clearing Banks and Custodians; detailed procedures for opening individual, joint, minor, corporate, NRI and HUF demat accounts; KYC, PAN and IPV requirements; executing DIS and statement deliveries; transmission of securities and nominations; demat and remat request processing; trade settlement cycles (T+1), market vs off-market transfers, and early pay-in; pledge creation, margin pledge/repledge, and invocation; corporate actions and public issues; debt and government securities in demat form; FPI services; and investor grievance redressal (SCORES) and arbitration. The exam consists of 100 multiple-choice questions to be completed in two hours, with a 60% passing score and 25% negative marking.

Assessment

100 multiple-choice questions of 1 mark each, totalling 100 marks, drawn from thirteen chapters covering the securities market, depository structure, DP functions (account opening, operations, transmission, demat, trading, pledge, corporate actions, debt/G-Secs, FPIs), and investor services.

Time Limit

2 hours (120 minutes).

Passing Score

60% (60 out of 100 marks). Negative marking of 25% of the marks assigned to a question applies for each wrong answer.

Exam Fee

Rs. 1,500 (plus payment gateway charges and applicable GST). (National Institute of Securities Markets (NISM), established by SEBI.)

NISM Series VI (Depository Operations) Exam Content Outline

5%

Introduction to Securities Market

Indian capital market structure, regulatory bodies, and primary vs secondary markets.

10%

Introduction to Depository

Depository system benefits, Depositories Act 1996, and NSDL and CDSL structures.

11%

Depository and its Business Partners

Roles and registration of DPs, RTAs, Clearing Corporations, Banks, and Custodians.

12%

Functions of DP – Account Opening

KYC, PAN, IPV, BSDA, and account types (minor, joint, corporate, NRI, HUF).

3%

Functions of DP – Account Operations

Demat transactions, Delivery Instruction Slips (DIS) validation, and signature checks.

5%

Functions of DP – Transmission & Nomination

Nomination registration/waiver, and transmission in case of death of joint/single holders.

9%

Functions of DP – Dematerialisation

DRF processing, certificate defacing, rematerialisation (RRF), and operational timelines.

13%

Functions of DP – Trading and Settlement

T+1 settlement cycle, market vs off-market trades, pay-in/out, and early pay-in rules.

10%

Functions of DP – Pledge and Hypothecation

Pledge vs hypothecation, margin pledge/repledge system, unpledging, and invocation.

7%

Functions of DP – Corporate Action & Public Issues

Monetary/non-monetary benefits, record date, IPO credits, and Rights Issue REs.

10%

Functions of DP – Debt and Government Securities

Debt demat, G-Sec/T-Bill auctions (NCB), SGBs in demat, and coupon/maturity payments.

2%

Additional Services – Foreign Portfolio Investor

FPI registration, custody services, and daily regulatory reporting requirements.

3%

Investor Services

Investor grievance redressal (SCORES), arbitration procedures, and IPF claims.

How to Pass the NISM Series VI (Depository Operations) Exam

What You Need to Know

  • Passing score: 60% (60 out of 100 marks). Negative marking of 25% of the marks assigned to a question applies for each wrong answer.
  • Assessment: 100 multiple-choice questions of 1 mark each, totalling 100 marks, drawn from thirteen chapters covering the securities market, depository structure, DP functions (account opening, operations, transmission, demat, trading, pledge, corporate actions, debt/G-Secs, FPIs), and investor services.
  • Time limit: 2 hours (120 minutes).
  • Exam fee: Rs. 1,500 (plus payment gateway charges and applicable GST).

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

NISM Series VI (Depository Operations) Study Tips from Top Performers

1Prioritise diabetes of high-weight chapters: Trading and Settlement (13%), Account Opening (12%), Depository Business Partners (11%), Pledge & Hypothecation (10%), and Debt/G-Secs (10%) make up 56% of the marks.
2Thoroughly learn KYC and account opening requirements, including documents needed for HUFs, corporates, NRIs, and minors, as these are tested heavily.
3Understand the margin pledge and repledge mechanism introduced by SEBI, as well as the distinction between pledge and hypothecation in depository operations.
4Practice the exact timelines: DPs forwarding DRFs within 7 days, and RTAs completing demat/remat requests within 30 days.
5Since there is a 25% negative marking penalty, avoid random guessing; eliminate incorrect options first and leave questions blank if you are completely unsure.

Frequently Asked Questions

How many questions are on the NISM Series VI exam and what is the duration?

The exam has 100 multiple-choice questions of 1 mark each, to be completed in 2 hours (120 minutes).

What is the passing score and is there negative marking?

The passing score is 60% (60 out of 100 marks). There is a negative marking of 25% (0.25 marks deducted) for each incorrect answer. Unanswered questions do not carry negative marks.

What is the fee and validity of the NISM Series VI certificate?

The exam fee is Rs. 1,500 plus applicable payment gateway charges and GST. The certificate is valid for 3 years from the date of passing the exam.

Who is mandated to take the NISM Series VI Depository Operations exam?

SEBI mandates this exam for associated persons of registered depository participants who deal with client interface, KYC verification, demat account opening, operations, and transaction settlement.

Are these official NISM exam questions?

No, these are original practice questions created by OpenExamPrep to help you prepare. NISM provides its own official study workbooks on its website.