Investment through P-notes tops 43 months with Rs 1.02 lakh crore


MUMBAI: Investment in the Indian capital market through participatory notes (P-notes) rose to Rs 1.08 lakh crore at the end of October, from a three-month high.

Foreign capital investors who are not registered in India can invest in the capital market through foreign institutional investors in the country. However for this investment he has to go through some processes.

At the end of March 2016, the investment through P-notes stood at Rs 1.08 lakh crore. P-notes investment increased by Rs 2,000 crore in October. Investments in equities fell by Rs 2,000 crore, while investments in debt instruments through P-notes declined by Rs 2,000 crore.

Long-term interest rates are now at an all-time low and inflationary pressures will force the Reserve Bank to raise interest rates in 203, prompting FPIs to shift from lending instruments to equities, an analyst said.

Out of the P-Notes investments of Rs 1.04 lakh crore at the end of October this year, Rs 216 crore was in equities, Rs 3 crore in debt instruments and Rs 5 crore in hybrid investments.

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