Investment through P-notes declines to 86706 cr in May
- June 24, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Investment through P-notes declines to 86706 cr in May
Subject :Economy
Section : External sector
Concept:
- Participatory notes (P-notes) are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves under SEBI directly after going through a due diligence process.
- The increase in P-notes investment is in line with the higher net inflows of Foreign Portfolio Investors (FPIs) in the cash segment.
- P-Notes are Offshore Derivative Investments (ODIs) with equity shares or debt securities as underlying assets, as they are used by the investors abroad but not within India.
- They provide liquidity to the investors as they can transfer the ownership by endorsement and delivery.
- While the FIIs have to report all such investments each quarter to SEBI, they need not disclose the identity of the actual investors.