Participatory Notes (P-notes)

Participatory Notes (P-Notes):
  • P-notes are offshore/overseas derivative instruments (ODIs) issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly.
  • P-notes haveĀ Indian stocks as their underlying assets.
  • They, however, need to go through due diligence process.
  • P-Notes are not used within the country but are mainly used outside India for making investments in shares listed in the Indian stock market.
  • SEBI had permitted FIIS to participate and register in the Indian stock market in 1992.
  • Why in News? Investment via P-Notes is declining using P-Notes.

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