Participatory Notes

Experts said p-notes issued at GIFT would not boost flows into the onshore markets in a big way but would be used for securities traded at the IFSC

The Budget provided acquisition financing by units of foreign banks set up at the IFSC-a move that will bring down the cost of financing for outbound mergers and acquisitions (M&A)

Investment in the Indian capital markets through participatory notes slightly dropped to Rs 96,292 crore at the end of December 2022 from the preceding month on higher valuation of domestic markets. Before the decline, the investment through the route had been on an increasing trend since July because of a slump in prices of oil and other commodities and relative outperformance of Indian equity markets. 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. According to Sebi data, the value of P-note investments in Indian markets --- equity, debt, and hybrid securities -- stood at Rs 96,292 crore at December-end, as compared to Rs 99,315 crore at the end of November. The investment level through the route was at Rs 97,784 crore at October-end, Rs 88,813 crore at September-end, Rs .

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SEBI had introduced participatory notes in the year 2000 so that the foreign investors too have a slice of India's growing stock markets pie. what is a P-note and what are SEBI's concerns around it?

Investment in the Indian capital markets through participatory notes rose to Rs 87,813 crore at the end of September, making it the second consecutive monthly increase, as the country witnesses the best growth and earnings among emerging markets. Participatory notes (P-notes) are issued by registered 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. According to Securities and Exchange Board of India (Sebi) data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- stood at Rs 87,813 crore in September compared to Rs 84,810 crore in August. In comparison, investment through this route was Rs 75,725 crore in July-end, Rs 80,092 crore in June-end, Rs 86,706 crore in May-end and Rs 90,580 crore at the end of April. Of the total Rs 87,813 crore invested through the route till September 2022, Rs 79,418 crore was invested in ..

After three consecutive monthly declines, investment in the Indian capital markets through participatory notes rose to Rs 84,810 crore at the end of August on the back of a drop in oil and commodity prices. However, the month of September might be subdued for P-note participation as the Foreign Portfolio Investors (FPIs) have turned cautious, Sonam Srivastava, Co-Founder at Wright Research, Sebi-registered research investment adviser, said. Participatory notes (P-notes) are issued by registered FPIs to overseas investors who wish to be a part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process. According to Securities and Exchange Board of India (Sebi) data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- stood at Rs 84,810 crore in August compared to Rs 75,725 crore in July-end. In comparison, investment through the route was Rs 80,092 crore in June-end, Rs 86,706

FPIs will reverse selling stance in one/two quarters, return to India's equities: Experts

Investments in the Indian capital market through Participatory notes (P-notes) dropped to Rs 87,989 crore at the end of January

Investments in Indian capital market through participatory notes (P-notes) dropped to Rs 94,826 crore till November-end after hitting 43-month high in the preceding month.

Investments in the Indian capital markets through participatory notes (P-notes) rose to Rs 92,261 crore till the end of June, making it the highest level in 37 months.

Our goal should be to achieve a low cost of capital for Indian firms, which calls for liquid and efficient markets accessible to all investors

The figure at March-end was the lowest level of investment since October 2004, when the total value of P-note investments in the Indian markets stood at Rs 44,586 crore

P-notes are issued by registered foreign portfolio investors to overseas investors who wish to be part of the Indian stock market without registering themselves directly

The inflow through P-notes in December was the lowest since February 2009, when the cumulative value of such investments stood at Rs 60,948 crore.

The majority of hedge funds which came in through the participatory notes (p-notes) route have opted to register themselves directly as foreign portfolio investors (FPIs).According to latest Sebi data, the notional value of p-note exposure to derivatives has dipped 91 per cent to Rs 50.72 billion as of November 2017 from Rs 557.8 billion in January. In July last year, the Securities and Exchange Board of India (Sebi) had issued a circular banning p-note holders from taking naked exposure to the derivatives market. It said all existing positions would have to be squared off by the end of 2020 or date of maturity of the instrument, whichever was earlier.According to experts, hedge funds with reasonable India exposure had started the process of (direct) registration within a few weeks of the Sebi circular. While the majority of hedge funds are coming direct, a few have exited the market, given their insignificant dealings in Indian derivatives relative to their overall operations."With ..

The P-notes business does not involve financing or funding component