NEW DELHI: Investments through participatory notes (P-notes) in the domestic capital market plunged to an over 15-year low of Rs 48,006 crore at the end of March amid high volatility in broader markets on concerns over coronavirus-triggered recession.
The decline in fund inflow through P-notes comes after two successive months of positive investments. P-notes investment stood at Rs 67,281 crore and Rs 68,862 crore at the end of January and February respectively.
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, hybrid securities and derivatives -- stood at Rs 48,006 crore until March, while the same was at Rs 68,862 crore at the end of February. This was the lowest level of investment since October 2004, when the total value of P-note investments in Indian markets stood at Rs 44,586 crore.
