Press Release (ePRNews.com) - INDORE, India - Apr 20, 2017 - Domestic capital markets Investments through participatory notes (P-Notes) have grown to a four-month high of Rs 1.78 lakh crore in March end, although strict norms put in place by Sebi to control inflow of illicit funds.
Participatory notes are issued by registered FPIs to overseas investors who like to participate in Indian markets without registering themselves directly, but they need to go through a proper due diligence process.
In proportion to Sebi data, total value of Participatory note investments in Indian markets , including the equity, debt and derivatives , spiraled to 1,78,437 crore at the end of March, v/s Rs 1,70,191 crore at the end of February 2017.
The total investment value through Participatory -notes stood at Rs 1.75 lakh crore and Rs 1.57 lakh crore respectively in the end of and December. Further, in March, the the p-note investment value had touched as its highest mark since November, when the cumulative value of such investments figured at 1,79,648 crore.
Of the total, P-note holdings in equities at the end of March were at Rs 1.12 lakh crore, and the remaining were in debt and derivatives markets.
As an actionto limit the probable round tripping, the Sebi is expected to further tighten the norm next week by keeping out resident Indians, NRIs and entities owned by them and from investing via P-notes.