P-Notes News

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 directly. They, however, need to go through a due diligence process.

Prior to this, an increase in investment was seen in October 2017, when the cumulative value of such fund infusion rose to Rs 1,31,006 crore from Rs 1,22,684 crore in September-end.

This is the lowest level since June 2009 when the cumulative value of such investments stood at Rs 97,885 crore.

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

Markets regulator Sebi on Wednesday tightened P-Note norms by levying a fee of USD 1,000 on each instrument and barred their issuance for speculative purposes to check any misuse for channelising black money.

Investments in domestic capital markets through participatory notes (P-notes) declined to Rs 1.70 lakh crore at the end of February from the preceding month.

Investments in domestic capital markets through participatory notes (P-notes) rose to Rs 1.75 lakh crore at the end of January, after hitting a 43-month low in the preceding month.

A number of foreign investors including HSBC and UBS have stopped issuing controversy-ridden P-Notes as regulatory and enforcement agencies step up their clampdown on misuse of this once-popular instrument among foreigners to invest in Indian markets.

In a crackdown on alleged misuse of P-Notes for round-tripping, markets regulator Sebi has found five foreign funds to have issued these controversy- ridden offshore investment instruments to Indian nationals.  

Markets regulator Sebi's board will meet on Saturday to take forward reform measures and discuss amending Debenture Trustee regulations, steps taken regarding P-notes, collective investment scheme and cases involving NSE and NSEL.

Investments in domestic capital markets through participatory notes (P-Notes) fell to its lowest level in two-and-half years to Rs 2 lakh crore in end-October.

Investments into domestic capital markets through participatory notes (P-Notes) dropped to Rs 2.12 lakh crore in September after hitting a five months high of Rs 2.16 lakh crore at the end of August.

Indian stocks tumbled like nine pins today, with the benchmark Sensex plunging over 439 points to close at a three-month low of 27,643.11 after a slew of global factors such as weak Chinese export data and Fed rate hike talks unnerved investors.

Investments into domestic capital markets through participatory notes (P-Notes) rose to the highest level in five months at Rs 2.16 lakh crore in August.  

Investments into India's capital markets through participatory notes (P-Notes) slumped to the lowest level in nearly two years to Rs 2.10 lakh crore at the end of June, on account of a tight vigil on funds coming through this route.

Investments into India's capital markets through participatory notes (P-Notes) declined to a 20-month low of Rs 2.11 lakh crore at the end of April, with Sebi keeping a strict vigil on funds coming through this route.

A weak trend continued for a third straight session as market benchmark Sensex fell 98 points to 25,301.90 in choppy trade on Friday on sustained foreign fund outflows and selling by domestic investors after regulator Sebi tightened guidelines to check any misuse of P-Notes.

With Sebi tightening norms for P-Notes, the regulatory regime for these offshore instruments for investing in Indian markets has become more stringent than in any other part of the world.

India's revised tax treaty inked with Mauritius will have no bearing on investments via Participatory Notes and the existing dispensation will continue to apply on them, government said Wednesday.