Investment via P-notes rises 1.7%

New Delhi: Investments in the Indian capital market through participatory notes increased by nearly Rs 1,400 crore to Rs 82,619 crore till May-end, a gain of 1.72 per cent over the previous month. As per latest data by the Securities and Exchange Board of India (Sebi), the total value of P-note investments in the Indian markets -- equity, debt, and derivatives -- rose to Rs 82,619 crore till May-end, from Rs 81,220 crore at April-end. Of the total investments, P-note holdings in equities stood at Rs 61,574 crore, followed by debt (Rs 19,681 crore) and derivatives (Rs 193 crore).

Investment through P-notes has been on the rise for the previous three months. A cumulative investment of Rs 73,428 crore was made till the end of February, Rs 78,110 crore till March and Rs 81,220 crore till April end. P-note investments were on a decline since June 2017 due to several measures taken by the market watchdog to stop the misuse of the controversy-ridden instrument.

In July 2017, Sebi had notified stricter norms stipulating a fee of USD 1,000 on each instrument to check any misuse for channelising black money. It had also prohibited FPIs from issuing such notes where the underlying asset is a derivative, except those which are used for hedging purposes.

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