NISM Series 6 Depository Operations – Previous Year Questions with Solutions

Your one‑stop resource to master NISM Series 6 for the Depository Operations exam. Dive into past year questions, detailed solutions, exam‑taking strategies, and practical tips to boost your score.

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Table of Contents

1. Understanding NISM Series 6
2. Why Practice Previous Year Questions?
3. Exam Pattern & Syllabus Snapshot
4. Previous Year Questions – Solutions
   • Question 1 – Depository Structure
   • Question 2 – Settlement Cycle
   • Question 3 – Beneficial Ownership
   • Question 4 – Demat Account Types
   • Question 5 – Corporate Actions
   • Question 6 – KYC & AML Compliance
5. Tips to Tackle NISM Series 6 Effectively
6. Frequently Asked Questions (FAQ)
7. Your Next Step – CTA

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Understanding NISM Series 6

Aspect	Detail
Full Form	Depository Operations
Conducting Body	National Institute of Securities Markets (NISM)
Target Audience	Aspiring Depository Participants, Relationship Managers, Back‑office staff, and anyone handling demat accounts
Certification	Mandatory for personnel dealing with depository operations under SEBI regulations
Validity	3 years (renewable)

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Why Practice Previous Year Questions?

• Pattern Recognition: The exam’s MCQ style, difficulty level, and phrasing remain largely unchanged year‑on‑year.
• Time Management: Solving real questions helps you gauge the time you need per question (≈ 1 minute).
• Concept Reinforcement: Applying theory to actual questions cements understanding.
• Confidence Booster: Familiarity reduces exam‑day anxiety and improves accuracy.

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Exam Pattern & Syllabus Snapshot

Section	No. of Questions	Marks	Time
Depository Structure & Functions	15	15	20 min
Demat Account Operations	20	20	25 min
Settlement & Clearing	15	15	20 min
Corporate Actions & Beneficial Ownership	10	10	15 min
Regulations, KYC & AML	10	10	10 min
Total	70	70	90 min

All questions are single‑correct MCQs. No negative marking.

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Previous Year Questions – Solutions

How to use this section:

1. Attempt the question on your own first.
2. Click Show Solution (the answer is provided below each question).
3. Note the concept tag (e.g., Settlement Cycle) for quick revision.

Question 1 – Depository Structure

Q: Which of the following entities is not a depository participant (DP) as per SEBI regulations?

A. Stock Broking Firm
B. Mutual Fund Distributor
C. Commercial Bank
D. Insurance Company

Solution:

• A DP is any entity registered with a depository (NSDL/CDSL) to offer demat services.
• Insurance companies cannot act as DPs (they can be investors but not participants).

Answer: D – Insurance Company

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Question 2 – Settlement Cycle

Q: In the Indian securities market, the standard settlement cycle for equity trades is T+?

A. 1
B. 2
C. 3
D. 4

Solution:

• Since 1 May 2022, the Indian market follows T+2 settlement for equities and equity‑linked instruments.

Answer: B – 2

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Question 3 – Beneficial Ownership

Q: Under the SEBI (Prohibition of Insider Trading) Regulations, a person who holds securities in the name of a nominee is considered a beneficial owner if:

A. The nominee is a relative.
B. The securities are held for less than 6 months.
C. The person enjoys all economic benefits of the securities.
D. The nominee is a registered DP.

Solution:

• Beneficial ownership is defined by the right to enjoy economic benefits and exercise voting rights, irrespective of the legal title.

Answer: C – The person enjoys all economic benefits of the securities.

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Question 4 – Demat Account Types

Q: Which type of demat account is mandatory for a foreign institutional investor (FII) investing in Indian securities?

A. Regular (Individual) Account
B. Repatriable Account
C. Non‑Repatriable Account
D. Custodial Account

Solution:

• FIIs must open a Repatriable Account to enable transfer of funds abroad.

Answer: B – Repatriable Account

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Question 5 – Corporate Actions

Q: In a stock split, the total market value of the shareholder’s holding after the split is:

A. Higher than before the split
B. Lower than before the split
C. Same as before the split
D. Depends on the market price on the day of split

Solution:

• A stock split merely changes the number of shares and the price per share; total market value remains unchanged (ignoring market fluctuations).

Answer: C – Same as before the split

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Question 6 – KYC & AML Compliance

Q: Which of the following documents is not acceptable for KYC verification of a corporate client?

A. Certificate of Incorporation
B. PAN Card of the company
C. Board Resolution authorising the account opening
D. Passport of the company’s CEO

Solution:

• A passport of an individual (CEO) is not a KYC document for the corporate entity itself.

Answer: D – Passport of the company’s CEO

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Tips to Tackle NISM Series 6 Effectively

Tip	How to Apply
Start with the Syllabus	Create a checklist of the 6 modules; tick off topics as you study.
Use the “One‑Page Formula Sheet”	Summarise settlement cycles, corporate action ratios, and KYC docs on a single A4 sheet for quick revision.
Practice in Timed Mode	Simulate the 90‑minute exam using a question bank; aim for ≤ 1 min per MCQ.
Analyse Mistakes	After each mock, note why the wrong option looked tempting; update your formula sheet accordingly.
Leverage Video Shorts	5‑minute concept videos (e.g., “T+2 Settlement Explained”) reinforce memory.
Join a Study Group	Discuss tricky questions on WhatsApp/Telegram—explaining concepts to peers solidifies knowledge.
Revise on the Go	Use flashcards (Anki or physical) for definitions like “Beneficial Owner” and “DP”.

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Frequently Asked Questions (FAQ)

Q1. How many attempts are allowed for NISM Series 6?
Ans: Unlimited. You can retake the exam until you achieve a passing score (≥ 65 %).

Q2. What is the minimum passing score?
Ans: 65 % (i.e., 46 out of 70 marks).

Q3. Is the exam conducted online or offline?
Ans: Both options are available. Most candidates opt for online proctored mode for convenience.

Q4. How long is the NISM Series 6 certification valid?
Ans: 3 years from the date of issue. Renewal requires re‑clearing the exam.

Q5. Can I use a calculator during the exam?
Ans: No. The exam is non‑calculative; all questions are conceptual.

Q6. Where can I download the official mock test?
Ans: From the NISM portal → Examination → Practice Test section (requires login).

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Your Next Step – CTA

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