Participatory notes News

Of the total investments made till last month, P-note holdings in equities were at Rs 56,747 crore, while the remaining was in debt and derivatives markets.

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.

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

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

Regulator Sebi on Wednesday proposed relaxed entry norms for foreign portfolio investors (FPIs) willing to invest directly in Indian markets rather than through participatory notes.

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 via participatory notes (P-notes) have surprisingly surged to 4-month high of Rs 1.78 lakh crore at the end of March despite stringent norms put in place by Sebi to curb inflow of illicit funds.

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.  

Sebi on Saturday announced review of norms governing stock exchanges, commodity derivatives market and reducing the listing time as part of reform measures while the regulator also apprised its board of actions taken in co-location issues related to NSE and the NSEL scam.

Markets regulator Sebi plans to further tighten the regulations governing participatory notes amid persisting concerns that this route is being used for illicit fund flows.

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.

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.

The General Anti-Avoidance Rules (GAAR) should not apply to a foreign portfolio investor (FPI) on redemption and maturity of participatory notes, industry body Assocham said Wednesday.

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.

Tightening its norms to check any misuse of controversy-ridden PNotes, regulator SEBI Thursday made it mandatory all end-users of these overseas instruments to follow anti-money laundering law in India and asked their issuers to report any suspected breach immediately.

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.