P-notes investment hits over 7-year low of Rs 1.25 lakh cr

28 September,New Delhi


Investments in the domestic capital market through participatory notes, P-notes, plunged to a seven-and-a-half year low of 1.25 lakh crore rupees at August-end this year.

This was because of stringent norms put in place by capital market regulator, SEBI.

The total value of P-notes investments in the Indian markets–equity, debt and derivatives–had hit a five-year low of 1.35 lakh crore rupees at the end of July.

Of the total investments in August, P-note holdings in equities stood at 88,911 crore rupees, while the rest were in debt and derivatives markets.

P-notes are issued by registered foreign portfolio investors to overseas players who wish to invest in the Indian markets without registering themselves directly. But they do need to go through proper due diligence.

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