NEW DELHI: Investment in the Indian capital markets through participatory notes has seen an upward trend in the past two months, with the number reaching Rs 95,911 crore in April-end, primarily driven by the country’s robust economic growth.
This was the highest level since November 2022, when investment through the route stood at Rs 96,292 crore, economic dailies reported on May 30.
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 95,911 crore at the end of April as compared to Rs 88,600 crore in March-end.
The growth in P-notes generally aligns with the trend in FPI flows, when there is a global risk to the environment, investment through this route increases and vice-versa.
