Series VI
Depository Operations
50 questionsPass mark 60%Negative marking 25% / wrong answer
NISM Series VI practice questions
150 questions. Each answer is explained.
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Learn these topics
Practise one unit at a time
- Introduction to the Indian Capital Market8 questions
- Introduction to Depository12 questions
- Depository and its Business Partners10 questions
- Functions of Depository Participant – Account Opening18 questions
- Functions of Depository Participant – Account Operations14 questions
- Functions of Depository Participant – Transmission and Nomination14 questions
- Functions of Depository Participant – Dematerialisation18 questions
- Functions of Depository Participant – Trading and Settlement16 questions
- Special Services – Pledge & Hypothecation12 questions
- Special Services – Public Offering / Corporate Actions12 questions
- Special Services – Debt Instruments & Government Securities6 questions
- Foreign Portfolio Investors (FPI)4 questions
- Investor Services6 questions
Exam format
| Questions | 100 · 1 mark each |
|---|---|
| Duration | 120 min · 2 hours |
| Pass mark | 60% · 60 of 100 marks |
| Negative marking | 25% · 0.25 marks off per wrong answer |
| Certificate validity | 3 years · from the date of the examination |
NISM Series VI Depository Operations
Exam rules read on NISM's site on 3 October 2026. Check the current rules on NISM's site (opens in a new tab)
What these answers assume, and when it was last checked
Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.
- NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
- The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
- The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
- Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
- Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
- F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
- The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
- Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
- On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
- Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
- This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
- The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
- Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
- The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
- The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
- Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
- Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
- Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
- A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
- SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
- At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
- A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
- The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
- Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
- The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
- Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
- Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
- Daily settlement is on T+1 and final settlement is on T+2.
- NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
- A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
- A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
- The currency segment has no Securities Transaction Tax.
The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 3 October 2026. Timed practice uses the same figures. Study with the official workbook as well.
The written-out answers on this page are hidden while your timed set runs.
5 sample questions with answers
The other 145 are on the unit pages above, written out the same way.
Q1Which statute specifically establishes the framework for holding and transferring securities through depositories?
Option A. Companies Act, 2013
Why it is wrong: Company law matters for issuers. But it is the Depositories Act that sets up the depository relationship.
Option B. Reserve Bank of India Act, 1934
Why it is wrong: The RBI Act does not set up the legal framework for demat holdings.
Option C. Securities Contracts (Regulation) Act, 1956
Why it is wrong: SCRA deals with securities contracts and markets. It does not cover the depository ownership framework asked for here.
Option D. Depositories Act, 1996 — Correct answer
Answer: D. The Depositories Act deals with the depository framework. It covers electronic ownership records and beneficial owners. It also covers participants, fungibility and related rights. Other Acts may affect an entity or a transaction. But they do not replace the law that governs the depository relationship tested here. Remember: Link each regulatory topic to its specific governing legislation.
Hint, shown before you answer in practice mode: Common mistake: Assuming a bank-operated DP is governed only by banking legislation.
VI-005easyconceptual
Q2A DP posts its Rights and Obligations document on its website but provides no copy or required acknowledgement to a new BO. Is the website posting alone an adequate substitute?
Option A. No. The DP must still deliver the document and get the acknowledgement as required — Correct answer
Option B. Yes. Posting it publicly removes every account-level paperwork duty that the DP has
Why it is wrong: General publication is not evidence that this BO received and acknowledged the document as required.
Option C. Yes. Giving the client a tariff sheet of charges automatically replaces the document
Why it is wrong: Price information does not replace the separate rights-and-obligations content.
Option D. Yes. The document only matters once a dispute with the client has already arisen
Why it is wrong: The document is part of establishing and operating the relationship, not only resolving disputes.
Answer: A. The Rights and Obligations document informs the BO of the service relationship and must be supplied and acknowledged in the prescribed manner. A public web page can aid access, but it does not by itself prove the required account-level compliance. A tariff sheet covers charges, not the full rights-and-obligations framework. Remember: Public disclosure and customer-specific delivery are different compliance steps.
Hint, shown before you answer in practice mode: Common mistake: Treating the availability of a document somewhere online as proof of receipt.
VI-026mediumapplication
Q3Under SEBI’s modified nomination norms implemented from 1 September 2026, how many nominees may an investor provide for a demat account?
Option A. Only 1
Why it is wrong: The current framework allows more than a single nominee.
Option B. Up to 10
Why it is wrong: Ten reflects an earlier framework rather than the modified current limit.
Option C. Up to 3 — Correct answer
Option D. Up to 5
Why it is wrong: Five is not the limit in the applicable circular.
Answer: C. The May 2026 circular, implemented from 1 September 2026, specifies up to three nominees. The effective date matters because earlier nomination circulars used a different framework. This question is dated to the current rule rather than to an older workbook or a superseded proposal. Remember: For changing nomination rules, retain both the applicable limit and its effective date.
Hint, shown before you answer in practice mode: Common mistake: Using a superseded nominee limit without checking implementation.
VI-070easyregulatory
Q4In a simplified net-settlement example for one client, ISIN and settlement, purchases total 420 shares and sales total 170 shares. Assume these trades are nettable and no other obligation exists. What is the net securities receivable?
Option A. 170 shares
Why it is wrong: 170 is only the sell quantity.
Option B. 250 shares — Correct answer
Option C. 590 shares
Why it is wrong: 590 is the sum of traded quantities rather than the net receivable.
Option D. 420 shares
Why it is wrong: 420 ignores the offsetting nettable sale.
Answer: B. Under the explicitly stated netting assumption, purchases create a receivable of 420 and sales offset it by 170, leaving 250 shares to receive. Gross trading volume is 590, but that is not the same as a net settlement obligation. Different settlements or non-nettable trades must not be combined using this shortcut. Remember: Use netting only within the scope in which it is permitted.
Hint, shown before you answer in practice mode: Common mistake: Confusing gross activity with the quantity due in settlement.
VI-103mediumnumerical
Q5An eligible investor moves government securities from its own SGL holding into its own depository holding without a purchase or sale consideration. Which term describes the stated movement?
Option A. Value-free transfer — Correct answer
Option B. A cash coupon payment
Why it is wrong: A coupon is a cash benefit, not the movement of the security itself.
Option C. Fresh auction allotment
Why it is wrong: No fresh issue or auction subscription is described.
Option D. Redemption at maturity
Why it is wrong: The security remains outstanding rather than being repaid and extinguished.
Answer: A. The government-securities FAQ describes a movement of the same owner’s securities without payment of consideration as a value-free transfer under the applicable arrangements. Ownership is being re-recorded in the receiving holding system rather than acquired from a seller. This does not dispense with instructions, account matching or issue-level verification. Remember: No sale consideration does not mean no recordkeeping or transfer controls.
Hint, shown before you answer in practice mode: Common mistake: Treating a change in holding location as a fresh investment transaction.
VI-138hardapplication
NISM Series VI practice: common questions
Are these the real NISM Series VI exam questions?
No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.
How many practice questions are there for NISM Series VI?
150 at the moment, across 13 practice topics, with one page per unit. It is a practice set, not a copy of the paper: the real NISM-Series-VI: Depository Operations Certification Examination has 100 questions.
Where are all the questions and answers?
On the 13 practice topics listed above. There are 5 in full. Each unit's page has the rest, with all four options, the correct answer and why each other option is wrong.
Does negative marking apply to NISM Series VI?
Yes. NISM takes off 25% of a question's marks for a wrong answer. On a 1-mark question that is 0.25 marks off. A blank question earns nothing and loses nothing, so a wrong guess costs marks on this paper. Timed practice here uses the same rule.
How do I book the NISM Series VI exam?
You register and pay on NISM's own website, nism.ac.in. The steps and the fee change from time to time, so read them there on the day you book.
Are these practice questions kept up to date?
Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.
See the exam these questions follow
The Depository Operations exam page shows the question count, the time, the pass mark and the marking rule.
Open the NISM Series VI exam page