Participatory Notes investors put in Rs 1.51 lakh cr in 2012

According to the latest data released by the Securities and Exchange Board of India (Sebi), the cumulative value of P-Note investments in Indian markets (equity, debt and derivatives) was at Rs 1,51,084 crore at December-end.

However, the December figure was lower than total investments of Rs 1.77 lakh crore in November and Rs 1.75 lakh crore in October.

At the end of 2011, investment by rich overseas entities in the Indian market through P-notes stood at Rs 1.38 lakh crore.

P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to invest in Indian markets through registered Foreign institutional investors (FIIs), while saving on time and costs associated with direct registrations.

Besides, value of P-Notes issued with derivatives as underlying, was at Rs 1.01 lakh crore at the end of the 2012.

The quantum of FIIs investments through P-Notes, however, declined to 11.3 per cent in December from 13.7 per cent in the previous month.

Until a few years ago, the P-Notes used to account for more than 50 per cent of total FII investments, but their share has fallen after Sebi tightened its disclosure and other regulations for such investments.

According to market analysts, after a lull seen in the first half of 2012, overseas entities have come back to

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