UNIQUE SERIES AKTU Syllabus
BMBF305

Depository Operations

L-T-P2-0-2 Credits3 Session2025-26 TypeTheory
Appears in 1 semester

MBA Banking & Financial Services · Sem 3 (Core)

Download PDF

Syllabus

5 units · 40 lecture hours
Unit1

Unit 1: Introduction to Depositary Operations

8 hrs

Role and Importance of Depositary Operations; Types of Financial Assets Held by Depositories; Regulatory Framework and Industry Standards; Overview of Securities Settlement and Custody Services; Depository Ecosystem: Interaction with Exchanges, Clearing Corporations, Custodians, Registrars, and Transfer Agents

Unit2

Unit 2: Securities Settlement and Clearing

8 hrs

Clearing and Settlement Processes for Securities; Roles and Responsibilities of Parties Involved in the Settlement Process; Settlement Methods – Delivery versus Payment (DVP), Free of Payment (FOP), etc.; Risk Management in Securities Settlement.

Unit3

Unit 3: Custody Services and Asset Protection

8 hrs

Safekeeping and Physical Protection of Securities; Corporate Actions and their Impact on Custody Services; Securities Lending and Borrowing; Asset Reconciliation and Valuation; ESG-related Corporate Actions and Stewardship Responsibilities; Collateral Management and Margin Processing; Artificial Intelligence Applications in Custody Operations

Unit4

Unit 4: Asset Servicing and Fund Administration

8 hrs

Income Collection and Distribution; Proxy Voting and Shareholder Communication; Tax Reclamation and Withholding Tax Management; Net Asset Value (NAV) Calculation; Fund Accounting.

Unit5

Unit 5: Compliance and Risk Management in Depositary Operations

8 hrs

Legal and Regulatory Requirements for Depositories; Know Your Customer (KYC) and Anti-Money Laundering (AML) Compliance; Risk Assessment and Mitigation Strategies; Technology and Automation in Depositary Operations; Data Privacy Regulations and Governance.

Course Objectives5 points
  • Understand the role and functions of depositories in financial markets.
  • Examine the legal and regulatory framework governing depository operations.
  • Learn about various depository services such as dematerialization and securities settlement.
  • Explore the clearing and settlement processes involved in depository operations.
  • Understand the mechanisms in place to protect investor interests and ensure corporate governance in depository operations. Course Contents
Course Outcomes (COs)5 outcomes

After completion of the course student will be able to:

  1. CO1Understand the role and functions of depositories in financial markets. K2: Understanding
  2. CO2Examine the legal and regulatory framework governing depository operations. K3: Applying
  3. CO3Apply knowledge of depository services such as dematerialization, custody, and securities settlement. K3: Applying
  4. CO4analyse clearing and settlement processes involved in depository operations. K3: Applying
  5. CO5Understand investor protection mechanisms, compliance requirements, and corporate governance practices in depository operations. K2: Understanding

Suggested Readings (Latest Edition)

  1. Michael Simmons; Securities Operations: A Guide to Trade and Position Management.
  2. David Loader; Custody and Securities Services: Global Securities Processing and Fund Services.
  3. Committee on Payment and Settlement Systems (CPSS); Securities Settlement Systems: Design, Governance, and Oversight.
  4. Regulatory Guidelines and Industry Reports from Relevant Authorities.
  5. Online Platforms and Databases for Accessing Industry News and Research Papers.

Official AKTU syllabus

This subject is on page 8, 9 of the original AKTU PDF.

Official AKTU syllabus PDF ↗