NEW DELHI: Investments in the Indian capital markets through participatory notes (P-notes) dropped to Rs 1.26 lakh crore in October-end after rising for seven consecutive months.

The latest data includes the value of participatory note investments in Indian equity, debt, and hybrid securities.

Participatory notes (P-notes) are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.

Before registering a decline in October, investments through P-notes have been increasing continuously since March, following the stable Indian economy against an uncertain global macro backdrop.

According to the latest data from markets regulator Sebi, the value of P-note investments in Indian markets - equity, debt, and hybrid securities - stood at Rs 1,26,320 crore at the end of October compared to a six-year high of Rs 1,33,284 crore at September-end.