Functions of Depository Participant – Dematerialisation
18 questions. Each answer is explained.
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Learn these topics
More units in NISM Series VI
- Introduction to the Indian Capital Market8
- Introduction to Depository12
- Depository and its Business Partners10
- Functions of Depository Participant – Account Opening18
- Functions of Depository Participant – Account Operations14
- Functions of Depository Participant – Transmission and Nomination14
- Functions of Depository Participant – Trading and Settlement16
- Special Services – Pledge & Hypothecation12
- Special Services – Public Offering / Corporate Actions12
- Special Services – Debt Instruments & Government Securities6
- Foreign Portfolio Investors (FPI)4
- Investor Services6
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 |
| Marks for this unit | Not published by NISM |
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 If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.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.
All 18 questions on Functions of Depository Participant – Dematerialisation, with answers
Q1An issuer has ordinary equity and a separate admitted debenture issue. What should the DP use to distinguish the two securities in an instruction?
Option A. The correct ISIN of the particular security — Correct answer
Option B. Only the issuer’s abbreviated company name
Why it is wrong: One issuer can have more than one admitted security.
Option C. Only the investor’s PAN on the instruction
Why it is wrong: A PAN names a person or entity. It does not name the security.
Option D. Only the broker’s order number for the trade
Why it is wrong: An order number does not replace the code the depository uses for a security.
Answer: A. An ISIN is a code for one security issue. A company name or a customer ID does a different job. Two securities from the same issuer should not be treated as the same. A matching company name does not change that. Getting the security right is essential for demat, transfers, pledges and corporate actions. Remember: Identify both the owner’s account and the exact security being processed.
Hint, shown before you answer in practice mode: Common mistake: Matching an issuer name but ignoring the instrument or series.
VI-077mediumapplication
Q2A client submits physical certificates of two different companies with one DRF. What is the appropriate preparation of the requests?
Option A. Convert only the certificate numbers into one common ISIN for both
Why it is wrong: Certificate numbers identify physical records and cannot manufacture a new common issue.
Option B. Choose the ISIN of the company with the larger holding for both
Why it is wrong: The other issuer’s certificates cannot be credited under the larger holding’s ISIN.
Option C. Use a separate request for each ISIN, with its own certificates — Correct answer
Option D. Combine all the certificates in one request, as one BO owns them
Why it is wrong: Common ownership does not make different securities fungible with one another.
Answer: C. Demat requests must distinguish securities by ISIN. A common owner does not allow holdings in different issues to be combined under one security identifier. Separate requests also allow the correct issuer or RTA to verify the certificates and respond without mixing unrelated records. Remember: Prepare demat requests at the correct security level.
Hint, shown before you answer in practice mode: Common mistake: Grouping all paper holdings together solely because the demat account is the same.
VI-078mediumapplication
Q3A company’s securities are unlisted but the relevant issue has been admitted to the depository system. Which statement is correct?
Option A. Unlisted status alone does not prevent demat of the admitted security — Correct answer
Option B. Dematerialisation necessarily converts the security into listed equity
Why it is wrong: Changing the holding form does not change listing status or instrument type.
Option C. Only securities listed on a stock exchange can ever be held in demat
Why it is wrong: The depository system can admit eligible unlisted securities.
Option D. Admission to the depository automatically guarantees an exchange trading market
Why it is wrong: Electronic records do not guarantee that an exchange market exists.
Answer: A. Listing and depository admission are different arrangements. An admitted unlisted security can be held in electronic form subject to the applicable conditions. Electronic holding does not itself create exchange listing, liquidity or a change in the instrument’s character. Remember: Distinguish eligibility for electronic holding from eligibility for exchange trading.
Hint, shown before you answer in practice mode: Common mistake: Assuming “demat” and “listed” mean the same thing.
VI-079mediumapplication
Q4A client holds three physical certificates of the same free ISIN: 100, 200 and 500 shares. The client wants to dematerialise 300 shares without first subdividing any certificate. Which selection achieves this?
Option A. Surrender 300 shares out of the 500-share certificate alone
Why it is wrong: This would treat only part of one paper certificate as handed in.
Option B. Surrender all certificates but ask for only 300 demat shares
Why it is wrong: The certificates handed in carry a number of shares. That number must match the demat request.
Option C. Surrender the 200-share certificate and claim another 100 without a certificate
Why it is wrong: Each paper holding asked for needs its own proof and must be processed.
Option D. Surrender the complete 100-share and 200-share certificates — Correct answer
Answer: D. The client can choose whole certificates for demat. Part of one certificate cannot be handed in as if it had been split first. The full 100-share and 200-share certificates make up 300 shares. The other 500-share certificate stays physical. Rematerialisation is different. It can take a chosen number of shares out of a fungible demat balance. Remember: Choose whole certificates whose quantities equal the intended demat amount.
Hint, shown before you answer in practice mode: Common mistake: Confusing partial demat of a portfolio with partial surrender of one certificate.
VI-080hardnumerical
Q5Physical certificates are held by A and B, but their joint demat account is ordered B and A. Both remain the same owners. Which facility addresses the holder-order difference while converting the certificates?
Option A. A fresh allotment in a public issue
Why it is wrong: The certificates represent an existing holding, not a fresh subscription.
Option B. Transmission of shares to a legal heir
Why it is wrong: No death or other succession event is described.
Option C. Invocation of a pledge on the shares
Why it is wrong: There is no enforcement of a pledged holding.
Option D. Transposition-cum-dematerialisation — Correct answer
Answer: D. Transposition changes the order of the same joint holders without substituting a new owner. Combined with dematerialisation, it can align the certificate holding pattern with the demat account through the prescribed request. Transmission concerns a legal succession event, while pledge invocation and fresh allotment arise from different transactions. Remember: Transposition reorders the same holders. It is not a sale to a new person.
Hint, shown before you answer in practice mode: Common mistake: Using transmission terminology whenever account names appear in a different order.
VI-081mediumapplication
Q6A and B are named on physical certificates. A asks to use transposition-cum-demat to credit an account held by A and C instead. What is the defect?
Option A. C is a different holder, so this is not just a reordering of the same owners — Correct answer
Option B. Changing the holders’ order always changes the number of shares credited
Why it is wrong: Reordering names does not by itself alter share quantity.
Option C. The request is valid simply because A appears as a holder in both of the accounts
Why it is wrong: The unmatched co-holder is a material difference in ownership.
Option D. Transposition cannot be used whenever two joint holders are involved
Why it is wrong: Transposition is specifically relevant to differences in joint-holder order.
Answer: A. Transposition preserves the set of holders and changes their sequence. Replacing B with C changes ownership and cannot be achieved by misdescribing it as transposition. The appropriate ownership-change procedure and supporting documents must be considered separately. One common name is not sufficient. Remember: Compare the full holder set, not just the first or a shared name.
Hint, shown before you answer in practice mode: Common mistake: Using transposition to bypass a genuine change of ownership.
VI-082hardapplication
Q7Physical certificates remain in a deceased holder’s name. An entitled claimant wishes to obtain the securities directly in electronic form after supplying the required succession documents. Which combined process is relevant?
Option A. Ordinary rematerialisation
Why it is wrong: The starting certificates are physical and the requested result is electronic, the reverse of remat.
Option B. Transmission-cum-dematerialisation — Correct answer
Option C. A normal off-market debit without succession documentation
Why it is wrong: The succession-related authority cannot be bypassed through an ordinary debit form.
Option D. Transposition-cum-dematerialisation
Why it is wrong: The holders have changed through death. This is not merely reordering the same names.
Answer: B. The combined facility addresses both the change arising from the holder’s death and the conversion from physical certificates into electronic holdings. The claimant’s entitlement must be established through the required documents. Dematerialisation alone cannot be used to ignore the difference between the deceased registered holder and the successor. Remember: Combine the correct legal-event process with the correct form-conversion process.
Hint, shown before you answer in practice mode: Common mistake: Treating a deceased-holder certificate as an ordinary certificate in the claimant’s own name.
VI-083mediumapplication
Q8A certificate is subject to a lock-in that has not expired. What is the effect of a permitted dematerialisation on that restriction?
Option A. The DP may sell the shares because the certificates are destroyed
Why it is wrong: Certificate cancellation does not authorise a sale contrary to lock-in.
Option B. The lock-in becomes a bank-account restriction instead
Why it is wrong: The restriction concerns the securities, not a substitution into the cash account.
Option C. The lock-in ends as soon as the DRF is submitted
Why it is wrong: Submitting a conversion request does not accelerate expiry of a restriction.
Option D. The electronic holding retains the applicable lock-in — Correct answer
Answer: D. Dematerialisation changes how the security is recorded, not the remaining legal restriction on its transfer. Lock-in details must be captured and maintained in the electronic system. Free and locked-in holdings require the appropriate separate treatment so that conversion does not accidentally create a freely transferable balance. Remember: Form conversion must preserve restrictions attached to the holding.
Hint, shown before you answer in practice mode: Common mistake: Believing paper restrictions disappear when the paper is cancelled.
VI-084mediumapplication
Q9While processing ordinary equity certificates for dematerialisation, why must prescribed defacing be done without obscuring important certificate details?
Option A. To make the certificate transferable again later by physical delivery to a buyer
Why it is wrong: The aim is to stop reuse. It is not to let the paper change hands again.
Option B. To hide a mismatch with the issuer’s records so the request is not rejected
Why it is wrong: Checks must show any mismatch. They must not hide it.
Option C. To change the face value of the shares before they are converted
Why it is wrong: Defacing is not a corporate action that changes the face value of shares.
Option D. To stop reuse while letting the issuer or RTA verify the surrendered holding — Correct answer
Answer: D. The certificate is marked, or defaced, in the prescribed way. This stops it from being wrongly used again after it is handed in. But its identifying details must still be readable. The issuer or RTA needs them to verify the holding and match the records. Defacing is a controlled way to cancel the paper. It gives no power to change the investor’s holding. Certificates of government securities have their own procedure. Do not assume this equity case applies to them. Remember: Preserve evidence while preventing surrendered certificates from circulating again.
Hint, shown before you answer in practice mode: Common mistake: Obliterating verification details while trying to cancel a certificate.
VI-085mediumapplication
Q10The RTA finds that a certificate number submitted with a DRF does not match its valid records. What is the appropriate response to the discrepancy?
Option A. Change the certificate number to the nearest valid number in the RTA’s records
Why it is wrong: Changing evidence to force a match would defeat verification.
Option B. Credit the shares at once, because the DP has already received a signed DRF
Why it is wrong: A client signature does not prove that every certificate is valid in issuer records.
Option C. Raise the mismatch for resolution instead of crediting unverified securities — Correct answer
Option D. Credit the same quantity under a different ISIN of the same company
Why it is wrong: Another security is not a substitute for the holding actually surrendered.
Answer: C. A signed request establishes an instruction but not the validity of the claimed security. The issuer/RTA verification is an essential stage, and a record mismatch needs resolution under the rejection or clarification process. Fabricating an identifier or substituting another issue would create unsupported holdings. Remember: Authority to request and evidence of a valid holding must both be established.
Hint, shown before you answer in practice mode: Common mistake: Treating acceptance of paperwork as final confirmation of the securities.
VI-086hardapplication
Q11A BO has 900 free demat shares. A request for another 250 physical shares is pending with the RTA and has not been credited. With no other restrictions, how many shares are currently available from the demat balance for delivery?
Option A. 1,150 shares
Why it is wrong: This treats an unconfirmed request as an effective credit.
Option B. 900 shares — Correct answer
Option C. 650 shares
Why it is wrong: The pending request does not subtract from the existing free holding.
Option D. 250 shares
Why it is wrong: This mistakes the pending quantity for the actual free balance.
Answer: B. Only the credited free balance is available for the stated delivery. A pending demat request is not an additional settled holding. The current balance is therefore 900, not 900 + 250. If and when the request is confirmed and credited without a restriction, availability can be recalculated. Remember: Do not include pending conversions in an available-delivery calculation.
Hint, shown before you answer in practice mode: Common mistake: Counting securities twice across a request register and the holdings ledger.
VI-087mediumnumerical
Q12Which request starts the standard process of converting an eligible demat holding back into physical certificates?
Option A. A Dematerialisation Request Form
Why it is wrong: A DRF converts physical holdings to electronic form, the opposite direction.
Option B. An off-market Delivery Instruction Slip
Why it is wrong: A transfer instruction changes the receiving account rather than requesting physical certificates.
Option C. A Rematerialisation Request Form submitted through the DP — Correct answer
Option D. A Destatementisation Request Form for mutual-fund SOA units
Why it is wrong: Destatementisation is the specific SOA-to-demat conversion of mutual-fund units.
Answer: C. Rematerialisation is the reverse holding-form conversion and uses the prescribed RRF. The DP and issuer/RTA process the request, debit the electronic balance as applicable and arrange the physical holding. The request is not a market sale, change of nominee or new issue subscription. Remember: Use RRF for demat-to-physical conversion and DRF for the reverse direction.
Hint, shown before you answer in practice mode: Common mistake: Selecting a form based only on the fact that securities leave the demat balance.
VI-088easyconceptual
Q13An investor has 1,200 free shares in demat and completes rematerialisation of 350. No other transaction occurs. What electronic balance remains?
Option A. 1,550 shares
Why it is wrong: This adds instead of debiting the converted quantity.
Option B. 850 shares — Correct answer
Option C. 1,200 shares
Why it is wrong: This would double-count the physical quantity as still electronic.
Option D. 350 shares
Why it is wrong: 350 is the quantity rematerialised, not the electronic remainder.
Answer: B. Rematerialisation reduces the electronic holding by the quantity converted. The balance is 1,200 − 350 = 850 shares. The investor still holds the converted 350 in physical form after completion. They are not an additional electronic credit and should not remain counted in both records. Remember: Reconcile both forms after conversion without double-counting ownership.
Hint, shown before you answer in practice mode: Common mistake: Thinking rematerialisation creates a second copy of the securities.
VI-089mediumnumerical
Q14An investor asks for the exact old certificate and distinctive numbers originally surrendered years ago. What should the DP explain about rematerialisation?
Option A. Rematerialisation is possible only if the original certificate numbers are remembered
Why it is wrong: Conversion works on the current balance. It does not depend on remembering old certificate numbers.
Option B. The investor must repurchase the shares before physical certificates can be issued
Why it is wrong: Changing the form of a holding does not require buying the shares again.
Option C. New physical certificates are issued. The original surrendered certificates are not restored — Correct answer
Option D. The depository must retrieve the original cancelled paper certificates
Why it is wrong: Surrendered and cancelled paper is not kept for the investor to use again.
Answer: C. Demat holdings are fungible electronic balances. Fungible means any unit can stand in for any other unit of the same security. The depository does not store the exact paper the investor first handed in. That paper was cancelled. Rematerialisation makes physical securities. It follows the issuer’s current process. The certificates get new details, as applicable. It does not bring back an old certificate that was kept aside. Remember: Fungible electronic holdings do not preserve the identity of old physical certificates.
Hint, shown before you answer in practice mode: Common mistake: Treating the depository as a vault of the investor’s original papers.
VI-090mediumconceptual
Q15A holder asks to rematerialise shares that remain subject to an active pledge. Which condition must be addressed first for that quantity?
Option A. The holder may rematerialise them unilaterally to remove the pledge
Why it is wrong: Unilateral form conversion cannot erase the lender’s interest.
Option B. The RRF itself is the pledgee’s consent to release
Why it is wrong: A borrower’s request is not automatically a lender’s release.
Option C. The pledge or lien must be released through the applicable process — Correct answer
Option D. The DP may replace the pledged shares with another client’s free holdings
Why it is wrong: Another client’s holdings cannot be substituted without lawful authority.
Answer: C. A physical conversion should not be used to defeat an encumbrance on the electronic holding. The pledge/lien must be closed or released as required before the affected quantity is available for rematerialisation. The holder’s RRF does not represent consent from the secured party, and client assets are not interchangeable across owners. Remember: Check encumbrances before processing an outward conversion.
Hint, shown before you answer in practice mode: Common mistake: Assuming changing from demat to paper removes a lender’s security interest.
VI-091hardapplication
Q16A mutual-fund investor holds units in Statement of Account form and wants the same units credited to a demat account with matching holders. Which process is relevant?
Option A. Destatementisation — Correct answer
Option B. Restatementisation
Why it is wrong: Restatementisation moves from demat back to SOA form.
Option C. Redemption
Why it is wrong: Redemption exits units for proceeds rather than merely changing their recording form.
Option D. Transposition alone
Why it is wrong: Changing holder order alone does not complete SOA-to-demat conversion.
Answer: A. Destatementisation converts the record of existing mutual-fund units from SOA form into demat form through the prescribed request and RTA confirmation. It is not a redemption, switch or new investment. Scheme/ISIN identity and holder pattern must remain consistent with the units being converted. Remember: SOA-to-demat conversion preserves the investment while changing its holding record.
Hint, shown before you answer in practice mode: Common mistake: Assuming every removal of units from an SOA is a redemption.
VI-092mediumconceptual
Q17A holder converts mutual-fund units from demat into Statement of Account form without redeeming. What should the holder expect?
Option A. New units in an unrelated scheme
Why it is wrong: The underlying scheme does not change merely because the recording form changes.
Option B. The units to continue under the fund’s SOA record, not a cash redemption payout — Correct answer
Option C. The units to disappear from both records with no corresponding holding
Why it is wrong: The conversion must preserve the holding in the destination form.
Option D. A compulsory cash payment equal to NAV for every converted unit
Why it is wrong: Conversion alone does not create a redemption obligation.
Answer: B. Restatementisation reverses the demat-record form for mutual-fund units. The units continue as an investment recorded outside the demat account under the fund’s SOA process. Because there is no redemption in the scenario, neither a sale price nor a redemption cash credit should be inferred solely from the demat debit. Remember: A debit in the demat record can be a form conversion rather than a sale.
Hint, shown before you answer in practice mode: Common mistake: Looking only at the debit and assuming the investor has exited the fund.
VI-093mediumconceptual
Q18An investor holds units of an Alternative Investment Fund in demat form. Which statement correctly describes the asset shown in that investor’s demat account?
Option A. Shares of every portfolio company, held automatically in the investor’s own name
Why it is wrong: Fund-unit ownership and direct ownership of each underlying security are different claims.
Option B. A bank deposit equal in value to the latest NAV reported by the AIF’s manager
Why it is wrong: NAV is a valuation concept, not proof of a bank deposit.
Option C. The investor’s AIF units, not direct ownership of each security the fund holds — Correct answer
Option D. An exchange-listed equity share, simply because the unit is now held in demat form
Why it is wrong: Electronic holding and exchange listing are distinct.
Answer: C. The investor owns units of the fund. The fund’s investments are separate assets held under the fund’s arrangements. Recording units electronically does not pass each portfolio security directly into every unitholder’s demat account. Demat form also does not itself make a unit exchange-listed or convert NAV into a withdrawable bank deposit. Remember: Identify the security represented by the demat entry, rather than substituting its underlying investments.
Hint, shown before you answer in practice mode: Common mistake: Confusing dematerialised fund units with a direct allocation of the entire fund portfolio.
VI-094mediumapplication
Functions of Depository Participant – Dematerialisation: common questions
How many practice questions are there on Functions of Depository Participant – Dematerialisation?
18 questions, all written out on this page with the correct answer and why each other option is wrong. This unit is one of the 13 practice topics for NISM Series VI, which has 150 questions in total.
Are these real NISM Series VI questions on Functions of Depository Participant – Dematerialisation?
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.
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.
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.
Functions of Depository Participant – Trading and Settlement
16 questions on Functions of Depository Participant – Trading and Settlement. Its quiz opens on that unit.
Open Functions of Depository Participant – Trading and Settlement