P-notes investment rises to Rs 62,138 crore by June

(Commercial Representative) Mumbai, Ta. 16 July 2020, Thursday

Investments in the Indian capital market through participatory notes (P-notes) have increased to Rs 2.15 crore by the end of June 2020. Which has increased for the third consecutive month.

P-Notes are issued by Registered Foreign Portfolio Investors (FPIs) to foreign investors who wish to invest in the Indian stock market but do not wish to register directly. However such investors are required to go through a due diligence process. According to SEBI data, the value of P-note investments in equities, debt, hybrid securities and derivatives in the Indian market stood at Rs 2.17 crore as on June 2020. At the end of May 2020, it was Rs 30,08 crore. This was earlier Rs 3,100 crore at the end of April 2020.

At the end of March 2020, the investment had touched a 15-year low of Rs 3,008 crore. Which was at its lowest level since the October 2008 investment level. At that time, P-note investments in the Indian market stood at Rs 4.5 crore.

The low investment figures in March 2020 were prompted by widespread panic in global markets and concerns over the crisis caused by the Corona virus epidemic. Total investments through P-notes at the end of June 2020 stood at Rs 4,16 crore, with stocks at Rs 4,161 crore, debt at Rs 5 crore, hybrid securities at Rs 21 crore and derivatives segment at Rs 15 crore.


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