'P-Notes' investments rise to $26 bn
As per the latest data released by market regulator Sebi, P-Note investments in Indian markets (equity, debt and derivatives) has reached the highest level since March when
cumulative value of their investment stood at Rs 1,65,832 crore.
The P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to put their money into Indian markets through already registered FIIs, while saving on time and costs associated with direct registrations.
The surge in the investment appears to be largely into the derivatives market, although equities account for more than half of the funds pumped in by P-Note investors into Indian markets.
The quantum of FII investments through these P-Notes also rose to 12.7 per cent, up from 11.8 per cent in the previous month the highest since 15 per cent in March this year.
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 in the last three to four months overseas entities have come back to India on expectations of the government's fresh initiatives on policy reforms.
The P-Note investments were on a steep uptrend this year till
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