NISM-Series-VI: Depository Operations Certification Examination

How can I appear for NISM DOCE Model Test? Where do I get sample questions papers?

We offer Model Test demo and premium based on latest syllabus. Register to take Model Test

Syllabus Outline for DOCE Exam

Assessment Structure: Exam Pattern for NISM DOCE

Syllabus

Unit 1: Introduction to the Capital Market

• 1.1 Introduction to the Capital Market
• 1.2 Explain the Capital Market
• 1.3 Understand the regulatory environment in Indian capital market,

• 1.3.1 Securities and Exchange Board of India Act, 1992
• 1.3.2 Securities Contracts (Regulation) Act, 1956
• 1.3.3 Depositories Act, 1996
• 1.3.4 Companies Act, 2013
• 1.4 Know the Regulators in the Indian Capital market

Unit 2: Introduction to Depository

• 2.1 Explain the need for a depository system

• 2.1.1 Highlight the key features of the depository system in India.
• 2.1.2 Explain the Institutional structure of the depository system in India

• 2.2 Explain the meaning of Depository.
• 2.3 Understand the legal framework in which the depositories function in India.

• 2.3.1 Know the key regulations under the Depositories Act 1996.
• 2.3.2 Know the eligibility criteria for becoming a depository.
• 2.3.3 Understand the registration process of the depository.
• 2.3.4 Understand the Commencement of Business.
• 2.3.5 Know the various rights and obligations of depositories.
• 2.3.6 Know the Bye Laws
• 2.3.7 Understand the records which need to be maintained by a depository.
• 2.4 Explain the functions of a depository

Unit 3: Depository and its business partners

• 3.1 Understand depository participants (DPs)

• 3.1.1 Know the eligibility criteria for becoming a DP.
• 3.1.2 Understand their business restrictions.
• 3.1.3 Understand the procedure of application for becoming a DP.
• 3.1.4 Know on what conditions registration is granted to DPs.
• 3.1.5 Learn the validity and renewal process of registration certificate.
• 3.1.6 Know the commencement of Operations.
• 3.1.7 Understand the rights and obligations.
• 3.1.8 Understand on what grounds a DP certificate can get suspended and cancelled.
• 3.1.9 Understand the Termination by depository

• 3.2 Understand the Clearing Corporation (CC)

• 3.2.1 Explain and understand the criteria for being admitted to the depository as a user.

• 3.3 Explain the Issuers and Registrar and Transfer Agents.

• 3.3.1 Know the eligibility criteria of becoming a RT&A.
• 3.3.2 Know the rights and obligations of issuers and their RTAs.
• 3.3.3 Understand the main features of the Tripartite Agreement.
• 3.3.4 Explain the role of issuer/R&T Agent in dematerialization of securities.
• 3.3.5 Explain the role of issuer/R&T Agent in rematerialization of securities.
• 3.3.6 Explain the role of issuer/R&T Agent in Corporate Benefits.

Unit 4: Functions of Depository Participant -Account Opening

• 4.1 Introduction to the Functions of Depository Participant -Account Opening
• 4.2 Understand the types of account a person can open with a DP
• 4.3 Define and discuss what is a Beneficiary Account
• 4.3.1 Learn about the documents required while opening of account for verification.
• 4.3.2 Know the Common Information.
• 4.3.3 Understand the procedure for opening an account.
• 4.3.4 Explain the Rights and Obligations of Beneficial Owner and Depository Participant.
• 4.3.5 Know the types of Application Forms.
• 4.3.6 Know the Forms for Hindu Undivided Family (HUF).
• 4.3.7 Know the Forms for companies.
• 4.3.8 Know the Forms for Minors.
• 4.3.9 Understand the Partnership Firms.
• 4.3.10 Know about the Signature/Thumb Impression.
• 4.3.11 Know the Client Account Number.
• 4.3.12 Understand the Standing Instructions / Purchase confirmation waiver.
• 4.4 Define the Clearing Member Account
• 4.4.1 Know the procedure for opening a clearing member account
• 4.5 Explain the Closure of account
• 4.5.1 Explain and understand the closure of an account on client’s request.
• 4.5.2 Know the closure on account of consolidation of accounts.
• 4.5.3 Understand the procedure when closure is initiated by a DP.
• 4.5.4 Know the process of Closure/Shifting of Clearing Account.
• 4.5.5 Know the process involved when mass shifting of account is initiated.
• 4.6 Understand the Freezing of account
• 4.7 Know the Changes in client details
• 4.8 Know the Accreditation of Investors for the purpose of Innovators Growth Platform

Unit 5: Functions of Depository Participant -Account Operations

• 5.1 Introduction to the Basic Services Demat Account (BSDA).
• 5.1.1 Understand the Eligibility Conditions for Opening BSDA.
• 5.1.2 Know the Annual Maintenance Charges.
• 5.1.3 Know the Services offered to BSDA Holders.
• 5.2 Explain the operation of a Joint Account
• 5.2.1 Learn about opening of depository account in joint names with an individual and a body corporate.
• 5.3 Know the Internet Based Depository Operations of NSDL.
• 5.3.1 Brief Internet - Based Demat Account Statement (IDeAS).
• 5.3.2 Know the SPEED - e.
• 5.3.3 Know SPICE (Submission of Power of attorney based Instructions for Clients Electronically).
• 5.3.4 Know NSDL Mobile App.
• 5.3.5 Learn Submission of Instruction through Mobile Phone Login Easily (SIMPLE).
• 5.3.6 Know SMS Alert Facility for NSDL demat account holders
• 5.4 Know the Internet Based Depository Operations of CDSL.

Unit 6: Functions of Depository Participant - Transmission and Nomination

• 6.1 Understand the concept of Transmission of Securities
• 6.2 Explain the concept of Nomination of Securities
• 6.3 Explain the Transmission of Securities

• 6.3.1 Understand the procedure of transmission of securities held singly with nomination.
• 6.3.2 Understand the procedure of transmission of Securities held singly in the Depository without nomination
• 6.3.3 Understand the procedure of transmission of securities held jointly in the depository.
• 6.3.4 Understand the procedure of transmission of securities held by the karta of the HUF in the depository.

Unit 7: Functions of Depository Participant - Dematerialization

• 7.1 Introduction to the Functions of Depository Participant - Dematerialization.
• 7.2 Explain the International Securities Identification Number (ISIN).

• 7.2.1 Understand which securities can be dematerialized.
• 7.2.2 Know the Regulations mandating transfer of securities in dematerialised form with a depository
• 7.3 Explain the Dematerialization Process

• 7.3.1 Learn about the prerequisites for a dematerialisation request.
• 7.3.2 Understand the procedure for dematerialisation.
• 7.3.3 Understand on what grounds a demat request is rejected.
• 7.3.4 Explain transposition cum dematerialisation.
• 7.3.5 Explain transmission cum dematerialisation of securities.

• 7.4 Explain the Rematerialisation process.

• 7.4.1 Explain the Prerequisites to a remat request.
• 7.4.2 Know the process of rematerialisation.

• 7.5 Understand Destatementization process.
• 7.6 Understand Restatementization process.

Unit 8: Functions of Depository Participant -Trading and Settlement

• 8.1 Introduction to the Functions of Depository Participant -Trading and Settlement.
• 8.2 Understand the process flow of securities (settlement) in an off-market transaction.
• 8.3 Explain the Settlement of Market Transactions.

• 8.3.1 Learn the important terms related to transaction on a stock exchange.

• 8.4 Learn about Interoperability.
• 8.5 Procedure for Subscription and Redemption of Mutual Fund Units.
• 8.6 Explain the Handling of Clients’ Securities by Trading Members/Clearing Members.

Unit 9: Special Services- Pledge and Hypothecation

• 9.1 Introduce the concept of pledge and hypothecation.
• 9.2 Procedure for pledge and hypothecation.

• 9.2.1 Understand the procedure for creation of a pledge / hypothecation by a pledger.
• 9.2.2 Learn the procedure for confirmation of creation of pledge/hypothecation by pledgee.
• 9.2.3 Learn the process of closure of a pledge/hypothecation by pledgor.
• 9.2.4 Learn about Unilateral closure of pledge.
• 9.2.5 Learn about Invocation of pledge by pledge.
• 9.2.6 Learn about Invocation of hypothecation.
• 9.2.7 Understand the substitution of securities offered in pledge and the corporate benefits for pledged/hypothecated securities.
• 9.3 Explain the Recording of Non Disposal Undertaking (NDU) in the Depository System.

Unit 10: Special Services- Public Offering /Corporate Action

• 10.1 Learn about concept of corporate actions.
• 10.2 Know the Important terms.
• 10.3 Understand the Procedure for Corporate Action.

• 10.3.1 Know the Monetary Benefits.
• 10.3.2 Know the Non-Monetary Benefits.
• 10.3.3 Know the Rights Issue.
• 10.3.4 Understand the Merger/Amalgamation/Capital reduction etc in the securities held with the depository.
• 10.3.5 Understand the Rights of pledgor and hypothecator.
• 10.3.6 Explain how the interest is paid on debt securities.

• 10.4 Know the Public Issue.
• 10.4.1 Explain the Public Issues Procedure.
• 10.4.2 Know the streamlining process of Public Issue of Equity Shares and convertibles.
• 10.4.3 Discuss the Tender offer.

Unit 11: Special Services- Debt Instruments and Government Securities

• 11.1 Introduction to Debt Instruments and Government Securities.
• 11.2 Explain the Certificate of Deposit (CDs).
• 11.3 Explain the Commercial Paper.
• 11.4 Discuss the Government Securities.

• 11.4.1 Understand the specific features of dealing in Govt. securities

Unit 12: Foreign Portfolio Investor

• 12.1 Introduction to the Foreign Portfolio Investor.
• 12.2 Know the Eligibility Criteria and the various categories of Foreign Portfolio Investor.

Unit 13: Investor Services

• 13.1 Introduction to Redressal of Complaints through Scores.
• 13.2 Introduction to Transfer of Shares to Demat Account of IEPF Authority