NISM Series 6: Depository Operation Certification Examination (Updated)

Who Should Prepare NISM Depository Operation Certification Examination?

NISM Series VI is also known as NISM Depository Operation Certification Examination. As Depository Operation is a huge task. Like other NISM modules, this series covers all the relevant aspects of Depository Operation in brief.

A must course for  those who work in depositories like NSDL and CDSL in India. Currently , there are two main depositories available in India, this course covers all the topics related to it.

The Depository Participants of NSDL and CDSL has  formed Depository  Participants  Association of India (DPAI). In 1995 Government of India promulgated  Depositories Ordinance Act  which later on became Depositories  Act 1996 to introduce and regulate the depository system  in India.

CDSL at present is leading the depository business in Mumbai and its related areas. The success of CDSL can also be gauged by the fact that CDSL is getting its business mainly from Mumbai and its neighboring areas whereas NSDL has well-established network throughout the country, then also according to the statistical figures CDSL is at par with NSDL.

Study Material For NISM 6:

You can buy Nism Series 6 workbook from Amazon or you canget previous edition of Ebook of NISM Depository Operation from here free of cost.

We also provide free mock test. We have covered all the NISM Depository Operation Certification questions and answers with detailed explanation for each question. This mock test also includes numericals as they also very important part of this modules.

NISM Depository Operation Weightage: List Of Units / Chapters In NISM Series VI

There Are About 15 Units / Chapters In NISM Depository Operation Certification Examination:

Chapter No.Unit/ Chapter ListWeightages %
1Introduction to Securities Market5%
2Introduction to Depository10%
3Depository and its Business Partners11%
4Functions of DP – Account Opening11%
5Functions of DP – Transmission & Nomination5%
6Functions of DP – Dematerialisation8%
7Functions of DP – Trading and Settlement12%
8Functions of DP – Pledge and Hypothecation10%
9Functions of DP – Corporate Action5%
10Functions of DP – Public Issues5%
11Functions of DP – Debt and Government Securities10%
12Additional Services – Warehouse Receipts5%
13Additional Services – Qualified Financial Institutions1%
14Additional Services – Rajiv Gandhi Equity Saving Schemes1%
15Additional Services – Basic Services Demat Account

Depository and its Business Partners and Functions of DP – Trading and Settlement are the most important chapter in Nism depository examination and have most Weightage.

As you can Chapters like Additional Services – Qualified Financial Institutions, Additional Services – Rajiv Gandhi Equity Saving Schemes, Additional Services – Basic Services Demat Account and Additional Services – Warehouse Receipts are very theorectical and have least Weightage and can be ignored if you have limited time.

NISM Depository Operation Mock Test (Play And Earn):

This NISM Depository mock test is created by our very experienced teacher who have deep knowledge and experience regarding Depository Operation in India.

These questions are up to date with detailed explanation of every question. The answers are easy to understand and are 100% accurate And up to date.

NISM 6 Important Questions

Results

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YOU LOSE !!!

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#1. In case of HUF, long term capital gain tax on equity mutual fund is

Taxation for Individual and HUF is same.

#2. In case of Domestic company, long term capital gain tax on debt mutual fund is

Taxation for Individuals, HUF and Domestic companies is same.

So, long term capital gain tax on debt mutual fund is 20% with Indexation benefit for all of them.

#3. In an Conservative portfolio, the highest allocation is not in the support of

In Conservative portfolio,

there is relatively less equity exposure as Investors  here have less risk taking capacity.

So in a Conservative portfolio, the highest allocation is  in the favor of debt funds not equity.

While in Case of an Aggressive portfolio,

there is relatively more equity exposure as Investors here have more risk taking capacity.

#4. Only existing unit holders can use transaction slips

Only existing unit holders can used transaction slips as they got folio number already.

But first time and NFO investor can only use transaction slips after getting folio number.

#5. Reaping phase corresponds with

Reaping phase and distribution phase both are retirement phase of unit holder.

#6. The cut off time for Arbitrage fund repurchase is

It doesn’t matter whether mutual fund is Liquid or Arbitrage.

For all mutual funds the cut off time for repurchase is 3 pm.

#7. An investors invest Rs. 2 crores in Liquid fund. what would be the applicable NAV for allotments of units? If application is time stamped at 3:30 pm and funds available with mutual funds at 1:45 pm.

#8. An investors invest Rs. 1 crores in Liquid fund. what would be the applicable NAV for allotments of units? If application is time stamped at 1:30 pm and funds available with mutual funds at 1 pm.

#9. An investors invest Rs. 1 crores in Liquid fund. what would be the applicable NAV for allotments of units? If application is time stamped at 3 pm and funds available with mutual funds at 2 pm

#10. An investors invest Rs. 1 crore in Sector fund. what would be the applicable NAV for allotments of units? If application is time stamped at 1:30 pm and funds available with mutual funds at 2 pm.

#11. An investors invest Rs. 1.4 crore in Liquid fund. what would be the applicable NAV for allotments of units? If application is time stamped at 1:30 pm and funds available with mutual funds at 3:30 pm.

#12. Rohan invest Rs. 1.5 crore in Liquid fund. what would be the applicable NAV for allotments of units? If application is time stamped at 1:30 pm and funds available with mutual funds at 3 pm.

#13. Shruti mohan invest Rs. 1.5 crore in Liquid fund. what would be the applicable NAV for allotments of units? If application is time stamped at 3 pm and funds available with mutual funds at 3:30 pm.

#14. SEBI's Advertising code are created for R&T Agents

SEBI’s Advertising code provisions are for Mutual funds.

#15. Who settles all the transactions on the behalf of Mutual Fund schemes?

As shares are in the custody of Custodian,

settlement of all the transactions on the behalf of Mutual Fund scheme is done by Custodian

#16. For the purchase and sale transactions of the various schemes of the mutual fund

#17. Interval fund has features of

Interval fund is combination of both open ended schemes and close ended schemes.

As in Interval fund most of the time it is close ended fund but in certain intervals it becomes open ended so that people can withdraw money.

#18. All transactions of purchase and sale of shares by Fund manager shall be disclosed to

To prevent front running and insider trading,

SEBI prescribed Compliance officer to get information from key personnel of schemes about the shares they buy and sold.

It is compulsory for key personnel(Fund Manager) to shares these information with compliance officer on half yearly basis.

The compliance officer verify these information if he saw any problem in it then he issued show cause notice.

#19. Shares held in physical form can be considered as physical asset

Shares both in physical and demat form can’t be considered as physical asset.

This is the advantage of investing in shares rather than  buying physical Gold.

As gold is physical asset it can get stolen.

But if share certificate is stolen then u can get it back from R&T Agent’s office.

#20. Investor reaches their peak of earning capacity at which phase

Obviously, Investor reach the highest earning capacity in pre-retirement stage.

 

#21. Commercial paper are short term securities issued by

#22. T- bill are short term securities issued by

#23. Debentures are

#24. Certificates of Deposits are

#25. Rohit offers his unit in an liquid scheme, for repurchase at 3:30 pm. What would be the applicable NAV for the repurchase?

The Applicable NAV for the repurchase for any mutual fund scheme is determine through cut off time:

 

  • If Repurchase happens before 3 pm then the Applicable NAV for the repurchase is Closing NAV of date of application.

  •  if Repurchase happens after 3 pm then the Applicable NAV for the repurchase is Closing NAV of Next business day.

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Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges.

As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Past performance of securities/instruments is not indicative of their future performance. This post is only for Educational purpose.

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