NISM Series 6 Mock Test 1: Free Depository Operations Paper

How this mock is marked

• 50 questions, one mark each.
• 60 minutes on the clock. That is the real exam's pace: 120 minutes for 100 questions.
• A wrong answer loses a quarter of a mark. A blank loses nothing.
• You pass with 60% or more.
• Submit to see your score and the chapters to work on. Then check each right answer and why it is right.

What this paper covers

50 questions from 13 chapters. Each chapter gets a share that follows our question bank.

• Introduction to the Indian Capital Market: 3 questions.
• Introduction to Depository: 4 questions.
• Depository and its Business Partners: 3 questions.
• Functions of Depository Participant – Account Opening: 6 questions.
• Functions of Depository Participant – Account Operations: 5 questions.
• Functions of Depository Participant – Transmission and Nomination: 5 questions.
• Functions of Depository Participant – Dematerialisation: 6 questions.
• Functions of Depository Participant – Trading and Settlement: 5 questions.
• Special Services – Pledge & Hypothecation: 4 questions.
• Special Services – Public Offering / Corporate Actions: 4 questions.
• Special Services – Debt Instruments & Government Securities: 2 questions.
• Foreign Portfolio Investors (FPI): 1 question.
• Investor Services: 2 questions.

By level: Beginner 7 · Intermediate 32 · Advanced 11.

Chapter split of Mock 1

How Mock 1 shares its questions between chapters and levels. This split belongs to this paper. The other mocks of this exam have their own.

• Introduction to the Indian Capital Market: Beginner 2 · Intermediate 1 · Advanced 0.
• Introduction to Depository: Beginner 1 · Intermediate 3 · Advanced 0.
• Depository and its Business Partners: Beginner 0 · Intermediate 2 · Advanced 1.
• Functions of Depository Participant – Account Opening: Beginner 1 · Intermediate 5 · Advanced 0.
• Functions of Depository Participant – Account Operations: Beginner 1 · Intermediate 3 · Advanced 1.
• Functions of Depository Participant – Transmission and Nomination: Beginner 1 · Intermediate 2 · Advanced 2.
• Functions of Depository Participant – Dematerialisation: Beginner 0 · Intermediate 5 · Advanced 1.
• Functions of Depository Participant – Trading and Settlement: Beginner 1 · Intermediate 3 · Advanced 1.
• Special Services – Pledge & Hypothecation: Beginner 0 · Intermediate 3 · Advanced 1.
• Special Services – Public Offering / Corporate Actions: Beginner 0 · Intermediate 2 · Advanced 2.
• Special Services – Debt Instruments & Government Securities: Beginner 0 · Intermediate 2 · Advanced 0.
• Foreign Portfolio Investors (FPI): Beginner 0 · Intermediate 0 · Advanced 1.
• Investor Services: Beginner 0 · Intermediate 1 · Advanced 1.

3 sample questions, with answers

These 3 questions are not in Mock 1, so reading them spoils nothing here. They come from Mock 3 of this exam. Each one shows the hint, the answer and why every wrong option is wrong.

1. Q1An investor holds ₹2,00,000 face value of a fixed-rate government security with a 6% annual coupon paid in two equal half-yearly instalments. Ignoring tax, what is one half-year’s coupon?

   • A

     Option A. ₹3,000

     Why it is wrong: ₹3,000 divides the annual amount by four rather than two.

   • B

     Option B. ₹6,000 — Correct answer

   • C

     Option C. ₹12,000

     Why it is wrong: ₹12,000 is the full year’s coupon.

   • D

     Option D. ₹2,00,000

     Why it is wrong: ₹2,00,000 is principal face value, not the periodic coupon.

   Answer: B. Annual coupon is ₹2,00,000 × 6% = ₹12,000. Two equal half-yearly payments divide that annual amount by two, producing ₹6,000 each. The calculation uses face value and the specified annual coupon, not a fluctuating market price. Principal repayment is a separate event. Remember: Apply an annual coupon to face value, then allocate it to the stated payment frequency.

   Hint, shown before you answer in practice mode: Common mistake: Paying a full annual coupon at each half-year date.

   VI-137mediumnumerical

   Study this unit

2. Q2For a training example only, assume an off-market transfer charge is 0.02% of a declared consideration of ₹4,50,000. Ignore minimums, maximums and taxes. What is the charge?

   • A

     Option A. ₹90 — Correct answer

   • B

     Option B. ₹9

     Why it is wrong: ₹9 understates the rate by a factor of ten.

   • C

     Option C. ₹900

     Why it is wrong: ₹900 uses 0.2%, ten times the stated rate.

   • D

     Option D. ₹9,000

     Why it is wrong: ₹9,000 uses 2%, one hundred times the stated rate.

   Answer: A. Convert the percentage to decimal: 0.02% = 0.0002. Multiplying ₹4,50,000 by 0.0002 gives ₹90. This is an explicitly hypothetical charge, not a statement of the current Indian stamp-duty rate or a particular DP’s tariff. Actual transaction charges must be taken from the applicable rule and tariff. Remember: Distinguish a percentage from its decimal multiplier, and do not treat illustrative rates as current law.

   Hint, shown before you answer in practice mode: Common mistake: Dropping the division by 100 when applying a percentage charge.

   VI-108mediumnumerical

   Study this unit

3. Q3A company announces three bonus shares for every five eligible shares held. A BO has 400 eligible shares and no fractional entitlement arises. How many bonus shares are credited?

   • A

     Option A. 666 shares

     Why it is wrong: This reverses the ratio and does not match the stated issue.

   • B

     Option B. 240 shares — Correct answer

   • C

     Option C. 400 shares

     Why it is wrong: 400 is the old eligible holding.

   • D

     Option D. 640 shares

     Why it is wrong: 640 is the post-bonus total rather than the additional shares.

   Answer: B. Bonus shares are 400 × 3/5 = 240. After the credit, the total holding would be 640, but the question asks only for the new bonus quantity. A bonus issue is not a cash dividend, and the arithmetic alone does not mean the total market value rises proportionately. Remember: Distinguish the incremental corporate-action credit from the final total balance.

   Hint, shown before you answer in practice mode: Common mistake: Answering with the total holding when the question asks for bonus shares.

   VI-125mediumnumerical

   Study this unit

Then take Mock 2

Read the chapters your result names first. A new paper then shows whether those gaps have closed.