Investments through P-Notes retreated from six-year highs


Mumbai: Investment through participatory notes (P-notes) fell to Rs 1.26 lakh crore at the end of October after increasing for seven consecutive months. At the end of September, P-Notes investment value stood at a 6-year high. Foreign investors not registered in India can invest in equities, debt instruments and hybrid securities through Foreign Portfolio Investors (FPIs) registered in the country.

FPIs issue P-Notes to investors investing through themselves. Investments through P-Notes have seen a steady rise since March this year as a result of the strength of India's economy amid global uncertainty, Securities and Exchange Board of India (SEBI) data said.

At the end of September this year, the total value of investments through P-Notes stood at a six-year high of Rs 1,33,284 crore, but it declined to Rs 1,26,320 crore in October. After Rs 1.35 lakh crore in July 2017, the figure for September was the highest. Generally, the investment trend through P-Notes follows the direction of FPI flow.

At the end of October, out of a total investment of Rs 1.26 lakh crore, Rs 1.18 lakh crore was in equities, Rs 8,055 crore in debt instruments and Rs 385 crore in hybrid securities, according to SEBI data.

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