Press Esc to close

P-notes investment rises to Rs 1.31 lakh cr in Oct

Press Trust of India, New Delhi, Dec 6 2017, 21:59 IST
P-note investments were on a decline since June and hit over eight-year low in September.

P-note investments were on a decline since June and hit over eight-year low in September.

Investments in the Indian capital market through participatory notes (P-notes) climbed to Rs 1.31 lakh crore at October-end after hitting an over eight- year low in the preceding month.

P-notes are issued by registered foreign portfolio investors to overseas players who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through due diligence.

The total value of P-notes investment in Indian markets - equity, debt and derivatives - rose to Rs 1,31,006 crore at October-end from Rs 1,22,684 crore at the end of September, according to the Sebi data.

P-note investments were on a decline since June and hit over eight-year low in September. This was in view of stringent norms put in place by the Securities and Exchange Board of India (Sebi).

Of the total investments in October, P-note holdings in equities were at Rs 90,161 crore and the remaining in debt and derivatives markets.

Besides, the quantum of FPI investments via P-notes remains unchanged at 4.1%.

Over the past few months, Sebi has taken several measures to stop the misuse of the controversy-ridden participatory notes. In July, the markets regulator notified stricter P- notes norms stipulating a fee of $1,000 that would be levied on each instrument to check any misuse for channelising black money.

Also, Sebi prohibited FPIs from issuing such notes where the underlying asset is a derivative, except those which are used for hedging purposes.

The move was a follow-through of Sebi's board approval of a relevant proposal in June. These measures were an outcome of a slew of other steps taken by the regulator in the recent past.

In April, Sebi had barred resident Indians, NRIs and entities owned by them from making investment through P-notes. The decision was part of efforts to strengthen the regulatory framework for P-notes, which have been long seen as being possibly misused for routing black money from abroad.

Go to Top

More from this section
Most trending stories
Photo Gallery
Prime Minister Narendra Modi addresses the media on the first day of the winter session...

Prime Minister Narendra Modi addresses the media on the first day of the winter session...

Outgoing Congress president Sonia Gandhi, former prime minister Manmohan Singh, Congress...

Outgoing Congress president Sonia Gandhi, former prime minister Manmohan Singh, Congress...

INLD MP Dushyant Chautala arrives by a tractor to attend the winter session of Parliament...

INLD MP Dushyant Chautala arrives by a tractor to attend the winter session of Parliament...

Social activist Anna Hazare while addressing a press conference at the Guwahati Press club, in...

Social activist Anna Hazare while addressing a press conference at the Guwahati Press club, in...

Members of Anganwadi workers hold a protest against Uttar Pradesh Government in support of their...

Members of Anganwadi workers hold a protest against Uttar Pradesh Government in support of their...

Election observers inspecting the EVM (Electronic Voting Machines) at a distribution centre...

Election observers inspecting the EVM (Electronic Voting Machines) at a distribution centre...

A vegetable vendor sits between the wheels of a parked truck, in a street market in Kolkata on...

A vegetable vendor sits between the wheels of a parked truck, in a street market in Kolkata on...

Army jawans near a helicopter parked at Kolkata maidan during foggy Friday morning. Historic Victori

Army jawans near a helicopter parked at Kolkata maidan during foggy Friday morning. Historic Victori

A fisherman casting his net at Dal Lake during a cold winter morning, in Srinagar on...

A fisherman casting his net at Dal Lake during a cold winter morning, in Srinagar on...

Muslims pray on the steps of a mosque during a demonstration against the...

Muslims pray on the steps of a mosque during a demonstration against the...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.