P-notes investment in June peaked at 37 months

MUMBAI: Despite the Corona crisis and economic uncertainties, foreign investors' confidence in the Indian capital market has remained intact. Foreign investors invested in the Indian capital market through participatory notes (P-notes) in June to the tune of Rs 5.31 crore, the highest in the last six months. Also, for the third consecutive month, P-Notes investment has seen growth.

P-notes are issued by registered Foreign Portfolio Investors (FPIs) to foreign investors wishing to invest in the Indian capital market without direct registration. However for that he needs to go through the process of due diligence.

According to data from the Securities and Exchange Board of India (Sebi), investments in equity, debt and hybrid securities through P-notes increased to Rs 5.31 crore in June from Rs 4.5 crore at the end of May. Earlier, P-Notes had invested Rs 2.4 crore in April and Rs 3,100 crore in March.

Out of the total P-notes investments of Rs 4.31 crore in June, Rs 4.5 crore came in the equity market, Rs 305 crore in the debt market and Rs 3 crore in hybrid securities.

P-Notes' investment in June 2021 is the highest since May 2015, when the Indian capital market saw an investment of Rs 4.5 crore. According to market analysts, this trend reflects the growing confidence of foreign investors in Indian capital markets.


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