Investment through participatory notes (P-notes) in the domestic capital market rose to a 31-month high of Rs 87,132 crore at December-end, reflecting the bullish stance of FPIs.
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, and hybrid securities — increased to Rs 87,132 crore till December-end from Rs 83,114 crore at the November-end.
This is the highest level of investment since May 2018, when the fund inflow through this route stood at Rs 93,497 crore.
P-notes investment was Rs 78,686 crore at the end of October 2020, although it had declined to Rs 69,82 crore in September