Investment in P-notes declines to Rs 80,341 crore
16th August, 2018Category:
According to the the Securities and Exchange Board of India (Sebi) data, total value of P-note investments in Indian markets - equity, debt, and derivatives - slumped to a low of Rs 80,341 crore till July-end from Rs 83,688 crore clocked by June-end amid stringent norms put in place to check misuse of these instruments. This is the lowest level since April 2009 when the cumulative value of such investments stood at Rs 72,314 crore.
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. 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. In April last year, SEBI had barred resident Indians, NRIs and entities owned by them from making investment through P-notes.
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