Investments through P-Notes hit a six-year high at the end of September
Mumbai: Investments through Participatory Notes (P-Notes) in the Indian capital market rose to a six-year high of Rs 1.33 trillion at the end of September.
September saw an increase in investment through P-Notes for the seventh consecutive month. Market circles said that P-Notes investments are witnessing a rise in the Indian capital market due to strong macroeconomic fundamentals.
After July, 2017, the number of investments through P-Notes is the highest. Investment through P-Notes stood at Rs 1.35 trillion at the end of July, 2017, according to Securities and Exchange Board of India (SEBI) data. Compared to Rs 1,28,249 crore at the end of August, investment through P-Notes increased at the end of September. It was Rs 1,33,284 crore.
Foreign investors seeking to participate in the Indian capital market invest in equities, debt instruments and hybrid securities in India through Foreign Institutional Investors (FPIs). Against which FPIS issues P-Notice to them. The flow of investment through P-Notes into the country generally follows the direction of the flow of foreign institutional investors.
An analyst said that due to India's stability amid uncertainty in the global economy, the country is witnessing an increase in P-Notes investments.
India is currently the fastest growing economy in the world and the equities market has also been relatively strong except for the last few sessions. By the end of September, out of a total investment of Rs 1.33 lakh crore through P-Notes, Rs 1.22 lakh crore was held in equities, Rs 10,688 crore in debt instruments and Rs 389 crore in hybrid securities, according to SEBI data.
Besides, the figure of assets under custody of FPIs also stood at Rs 58.45 trillion at the end of September as against Rs 57.63 trillion at the end of August.
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