P-note investments dip for 4th straight month

Dropping for the fourth consecutive month, investments through participatory notes (P-notes) in the Indian capital market stood at Rs 76,611 cr at the end of September.
P-note investments dip for 4th straight month

New Delhi

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 after going through a due diligence process. Investments through P-notes have been declining since June, according to the latest data from markets regulator Sebi.

The total value of P-note investments in the Indian markets, equity, debt, and derivatives, declined to Rs 76,611 cr till September-end, from Rs 79,088 cr at August-end, showed the data.

At the end of July, the Indian capital market saw a total inflow of Rs 81,082 cr via P-notes, a fall as compared to Rs 81,913 cr till June-end. The investment had stood at Rs 82,619 in May. Of the total investments made till the end of September, Rs 50,676 cr was invested in the equities, Rs 25 cr in debt and Rs 241 cr in the derivatives segment.

In July, the board of Sebi has approved a proposal to rationalise the framework for issuance of P-notes, an instrument once popular with foreign investors.

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