Complete 2026 NISM Series 6 – Depository Operations Guide

Your one‑stop resource to ace the NISM Series 6 exam, master depository operations, and boost your career in the securities industry.

---

📌 Why This Guide Is Essential

What You Want	What This Guide Gives You
Clear syllabus breakdown	Chapter‑wise topics with weightage
Exam‑ready study plan	8‑week timetable + daily 2‑hour schedule
Conceptual notes	Concise theory, key formulas & flow‑charts
Practice questions	250+ MCQs, mock test with solutions
Tips & tricks	Memory aids, common pitfalls, time‑management hacks
FAQ & Quick‑Recall	Instant answers to the most‑asked doubts

---

🗂️ NISM Series 6 – Depository Operations Overview

Section	Topics Covered	Approx. Marks
1. Overview of Depositories	Types (NSDL, CDSL), structure, participants, D‑account opening	5
2. Dematerialisation & Rematerialisation	Process flow, benefits, electronic book‑entry, securities conversion	8
3. Settlement Cycle	T+2, T+1 (for derivatives), STP, role of DP, clearing corporation	7
4. Beneficial Ownership & Custody	Rights of beneficial owners, custodial arrangements, pledge & hypothecation	6
5. Corporate Actions	Bonus, splits, rights issue, buy‑backs, mergers, demergers, dividend processing	10
6. Transfer & Transmission	Transfer mechanics, transmission on death, inheritance, KYC updates	6
7. Account Maintenance	Account statements, e‑statements, audit trails, reconciliation	4
8. Regulatory Framework	SEBI (Depositories) Regulations 2023, RBI guidelines, FEMA, AML/CTF	7
9. Technology & Security	Encryption, digital signatures, two‑factor authentication, cyber‑risk	5
10. Ethics & Professional Conduct	Code of conduct, confidentiality, conflicts of interest	2
Total	—	60

Note: The exam is a 3‑hour MCQ test (60 questions, 1 mark each, 0.25 mark negative for wrong answer).

---

📚 Study Plan – 8 Weeks to Success

Week	Focus	Daily Target (≈2 hrs)
1	Foundations – Depository basics, participants, D‑account opening	Read chapter, make 1‑page summary, 10 MCQs
2	Demat & Remat – Process flow, benefits, journal entries	Flow‑chart creation, 15 MCQs
3	Settlement Cycle – T+2, STP, clearing house role	Timeline diagram, 20 MCQs
4	Corporate Actions – All 7 actions, journal entries, tax impact	Table of actions, 25 MCQs
5	Beneficial Ownership & Custody – Rights, pledge, hypothecation	Case‑study analysis, 20 MCQs
6	Regulations & Compliance – SEBI regs, RBI, AML	Flashcards, 15 MCQs
7	Technology & Security – Encryption, digital signatures	Mini‑project (mock e‑statement), 10 MCQs
8	Revision & Mock Test – Full‑length test + analysis	1 mock + review, 30 min quick‑recap daily

Tip: Use the Pomodoro technique (25 min study + 5 min break). After each week, spend 30 min reviewing the “weak‑area” list.

---

📖 Concise Theory Nuggets

1. Depository Structure

• Central Depository – NSDL & CDSL (mutually exclusive).
• Participants – Depository Participants (DPs), Clearing Corporations, Stock Exchanges, Registrars.
• Beneficial Owner – Holds economic rights; DP holds legal title.

2. Dematerialisation Process

1. Investor submits physical share to DP.
2. DP sends to Depository → Electronic Entry created.
3. Physical share destroyed → Dematerialised Holding recorded.

Key Formula: Number of Demat Shares = Physical Shares – Shares in Transit

3. Settlement Cycle (T+2)

Day	Activity	Who’s Involved
T‑0	Trade execution	Exchange, Broker
T+0	Trade confirmation	Clearing Corp.
T+1	Trade allocation & netting	DP, Custodian
T+2	Final settlement (delivery vs payment)	DP, Bank, Clearing Corp.

4. Corporate Action Journal Entry (Example – Bonus Issue)

• Debit: Bonus Share Capital (Par)
• Credit: Retained Earnings (or Reserves)

5. Regulatory Highlights

• SEBI (Depositories) Regulations, 2023 – Mandatory KYC, audit trails, dispute resolution.
• RBI Circular on DP‑Bank Linkage – DP must maintain a DP‑Bank for settlement funds.

---

📝 Practice Corner

Sample MCQ

Q: A demat account holder wishes to transfer shares to his son after his demise. Which of the following is NOT required?
A) Legal heir certificate
B) Original share certificates
C) D‑Form (Transfer Form) signed by the executor
D) Updated KYC of the son

Answer: B – Physical certificates are already destroyed; only D‑Form & legal heir documents are needed.

(Full set of 250+ questions available in the downloadable PDF – link at the end.)

---

❓ Frequently Asked Questions

Q1. How many questions are asked on corporate actions?
A: Approximately 10‑12 questions (≈ 16‑20 % of the paper).

Q2. Is the T+1 settlement applicable to any instrument?
A: Yes, for derivatives (futures & options) the settlement is T+1.

Q3. Can a DP hold securities on behalf of a foreign investor?
A: Only if the foreign investor has a Resident Investor status under FEMA and a valid DP‑Bank account.

Q4. What is the penalty for a DP for non‑compliance with SEBI regulations?
A: Up to ₹5 crore or suspension/revocation of DP licence, whichever is higher.

Q5. Do I need to memorize the entire SEBI (Depositories) Regulations?
A: No. Focus on Key Sections – 2 (Definitions), 3 (DP Registration), 6 (Beneficial Owner Rights), 9 (Audit & Record‑keeping).

---

💡 Pro Tips to Maximise Score

1. Flag “High‑Yield” Topics – Corporate actions, settlement cycle, and regulatory framework together account for ≈ 45 % of marks.
2. Eliminate Strategically – For every question, eliminate at least one option; guess only when you have a 50 % chance (negative marking is only 0.25).
3. Use Mnemonics –
   • “D‑E‑M‑A‑T” → Document, Encrypt, Match, Acknowledge, Transfer.
   • “B‑C‑D‑E” for corporate actions: Bonus, Consolidation (split), Dividend, Ex‑rights.
4. Revise with Flashcards – Write a question on one side, answer on the other; review daily.
5. Mock Test Analysis – After each mock, categorize errors: Conceptual, Careless, Time‑pressure. Fix the first two immediately.

---

📥 Downloadable Resources

Resource	Description	Size
Complete NISM Series 6 PDF	Theory notes, flow‑charts, 250 MCQs + answers	4 MB
8‑Week Study Planner (Excel)	Calendar with daily tasks, progress tracker	150 KB
Flashcard Deck (Anki)	Ready‑to‑import .apkg file	2 MB
Mock Test (PDF + Answer Key)	Full‑length 60‑question paper (time‑bound)	1 MB

👉 [Click here to download all resources for FREE](https://example.com/nism-series6-guide)

---

🚀 Call‑to‑Action

Ready to crack NISM Series 6 on your first attempt?

1. Download the free study pack (link above).
2. Join our 8‑week live boot‑camp – Live doubt‑clearing, weekly quizzes, and a final mock test. Seats are limited to 30 participants.
3. Enroll now and get a 20 % discount on the premium NISM preparation portal (₹4,800 → ₹3,840).

🔗 [Enroll in the Boot‑Camp →](https://example.com/nism-bootcamp)

Follow us on LinkedIn & Telegram for daily tip‑of‑the‑day, last‑minute revisions, and success stories from candidates who have already cleared the exam.

---

Prepared by: [Your Name], Certified NISM Instructor & Securities Operations Expert

Stay focused, study smart, and let the depository world become your playground!