{"id":6488,"date":"2018-01-29T13:33:14","date_gmt":"2018-01-29T13:33:14","guid":{"rendered":"https:\/\/sunkrish.com\/?p=6488"},"modified":"2018-01-29T13:35:46","modified_gmt":"2018-01-29T13:35:46","slug":"investment-in-participatory-notes-hits-6-month-high-of-rs-1-5-lakh-cr-in-december","status":"publish","type":"post","link":"https:\/\/sunkrish.com\/index.php\/2018\/01\/29\/investment-in-participatory-notes-hits-6-month-high-of-rs-1-5-lakh-cr-in-december\/","title":{"rendered":"Investment in participatory notes hits 6-month high of Rs.1.5 lakh cr in December"},"content":{"rendered":"

\"\"<\/a>According to SEBI data, the total value of P-note investments in Indian markets – equity, debt, and derivatives – increased to \u20b91,52,243 crore at December-end from \u20b91,28,639 crore at the end of November.<\/p>\n

Investments in domestic capital markets through participatory notes (P-notes) surged to a six-month high of over \u20b91.5 lakh crore at December-end despite stringent norms put in place by regulator SEBI to check their misuse.<\/p>\n

P-notes are issued by registered foreign portfolio investors to overseas investors who wish to be part of Indian stock markets without registering themselves directly. They, however, need to go through a proper due diligence process.<\/p>\n

According to SEBI data, the total value of P-note investments in Indian markets – equity, debt, and derivatives – increased to \u20b91,52,243 crore at December-end from \u20b91,28,639 crore at the end of November.<\/p>\n

This is the highest level since June when the cumulative value of such investments stood at \u20b91.65 lakh crore.<\/p>\n

Of the total investments in November, P-note holdings in equities were at \u20b91.2 lakh crore and the remaining in debt and derivatives markets.<\/p>\n

Besides, the quantum of FPI investments via P-notes surged to 4.6% during the period under review from 4% in the preceding month.<\/p>\n

Prior to the recent surge, P-note investments were on a decline since June and hit an over eight-year low in September. However, these investments slightly rose in October but fell in November.<\/p>\n

These declines could be attributed to several measures taken by markets regulator Sebi to stop the misuse of the controversy-ridden participatory notes.<\/p>\n

In July, SEBI notified stricter P-notes norms stipulating a fee of $1,000 that would be levied on each instrument to check any misuse for channelising black money.<\/p>\n

Also, SEBI prohibited FPIs from issuing such notes where the underlying asset is a derivative, except those which are used for hedging purposes.<\/p>\n

The move was a follow-through of the SEBI board\u2019s approval of a relevant proposal in June. These measures were an outcome of a slew of other steps taken by the regulator in the recent past.<\/p>\n

In April, SEBI had barred resident Indians, NRIs and entities owned by them from making the investment through P- notes.<\/p>\n

The decision was part of efforts to strengthen the regulatory framework for P-notes, which have been long seen as being possibly misused for routing black money from abroad.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to SEBI data, the total value of P-note investments in Indian markets – equity, debt, and derivatives – increased to \u20b91,52,243 crore at December-end from \u20b91,28,639 crore at the end of November. Investments in domestic capital markets through participatory … Continued<\/a><\/p>\n","protected":false},"author":1,"featured_media":3992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,4,497,493],"tags":[518,314,294,299,324,334],"class_list":["post-6488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-business-advisory-services","category-financial-corporate-services","category-cross-border-transactions-mas-joint-ventures","category-economy-business-updates-corporate-affairs","tag-black-money","tag-debt","tag-investment","tag-private-equity","tag-securities-and-exchange-board-of-india-sebi","tag-stock-exchanges"],"_links":{"self":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/6488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/comments?post=6488"}],"version-history":[{"count":3,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/6488\/revisions"}],"predecessor-version":[{"id":6491,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/6488\/revisions\/6491"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media\/3992"}],"wp:attachment":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media?parent=6488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/categories?post=6488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/tags?post=6488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}