NISM-Series-VI: Depository Operations Certification Examination

Curriculum (w.e.f October 7, 2019)

I. Introduction to the Capital Market

A. Introduction to the capital market

B. Explain the Capital Market

C. Understand the regulatory environment in Indian capital market

D. Know the Regulators in the Indian Capital market

II. Introduction to Depository

A. Explain the need for a depository system

B. Explain the meaning of Depository

C. Understand the legal framework in which the depositories function in India

D. Explain the functions of a depository

III. Depository and its Business Partners

A. Understand depository participants (DPs)

B. Understand the Clearing Corporation (CC)

C. Explain the Issuers and Registrar and Transfer Agents

IV. Functions of Depository Participant -Account Opening

A. Introduction to the Functions of Depository Participant -Account Opening

B. Understand the types of account a person can open with a DP

C. Define and discuss what is a Beneficiary Account

D.Define the Clearing Member Account

E. Explain the Closure of account

F. Understand the Freezing of account

G. Know the Changes in client details

H. Know the Accreditation of Investors for the purpose of Innovators Growth Platform

V. Functions of Depository Participant – Account Operations

A. Introduction to the Basic Services Demat Account (BSDA)

B. Explain the operation of a Joint Account

C. Know the Internet Based Depository Operations of NSDL

D. Know the Internet Based Depository Operations of CDSL

VI. Functions of Depository Participant – Transmission and Nomination

A. Understand the concept of Transmission of Securities

B. Explain the concept of Nomination of Securities

C. Explain the Transmission of Securities

VII. Functions of Depository Participant -Dematerialization

A. Introduction to the Functions of Depository Participant –Dematerialization

B. Explain the International Securities Identification Number (ISIN)

C. Explain the Dematerialization Process

D. Explain the Rematerialisation process

E. Understand Destatementization process

F. Understand Restatementization process

VIII. Functions of Depository Participant -Trading and Settlement

A. Introduction to the Functions of Depository Participant -Trading and Settlement

B. Understand the process flow of securities (settlement) in an off-market transaction

C. Explain the Settlement of Market Transactions

D. Learn about Interoperability

E. Procedure for Subscription and Redemption of Mutual Fund Units

F. Explain the Handling of Clients’ Securities by Trading Members/Clearing Members

IX. Special Services- Pledge and Hypothecation

A. Introduce the concept of pledge and hypothecation

B. Procedure for pledge and hypothecation

C. Explain the Recording of Non Disposal Undertaking (NDU) in the Depository System

X. Special Services- Public Offering and Corporate Action

A. Learn about the concept of corporate actions

B. Know the Important terms

C. Understand the Procedure for Corporate Action

D. Know the Public Issue

XI. Special Services- Debt Instruments and Government Securities

A. Introduction to Debt Instruments and Government Securities

B. Explain the Certificate of Deposit (CDs)

C. Explain the Commercial Paper

D. Discuss the Government Securities

XII. Foreign Portfolio Investor

A. Introduction to the Foreign Portfolio Investor

B. Know the Eligibility Criteria and the various categories of Foreign Portfolio Investor

XIII. Investor Services

A. Introduction to Redressal of Complaints through Scores

B. Introduction to Transfer of Shares to Demat Account of IEPF Authority