New Delhi: Investments through participatory notes (P-notes) in the Indian capital market slipped to ₹81,913 crore in June after posting growth for the previous four months.
In the previous four months, cumulative investment of ₹73,428 crore was made till the end of February, ₹78,110 crore till March-end, ₹81,220 crore till April-end and ₹82,619 till May-end.
P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly after going through a due diligence process.
According to the latest data from the Securities and Exchange Board of India (Sebi), the total value of P-note investments in the Indian markets -- equity, debt, and derivatives -- fell to ₹81,913 crore till June-end.
Out of the total investments made till the end of June, ₹56,664 crore was invested in the equities segment, ₹24,428 crore in debt and ₹821 crore in the derivatives market.
There is a decline of 0.85% in the total value of P-notes investment from the previous month when the total investment stood at ₹82,619 crore.
"The use of P-notes has been on a decline since 2017 because of gradual measures taken by regulatory bodies to curb its usage. A healthy number of people have been seen shifting from P-notes to FPIs in the last few months as the process has been made easier," Ishan Bansal, co-founder of Groww, said.
In July 2017, Sebi had notified stricter norms stipulating a fee of $1,000 on each instrument to check any misuse for channelising black money. It had also prohibited FPIs from issuing such notes where the underlying asset is a derivative, except those that are used for hedging purposes.
This story has been published from a wire agency feed without modifications to the text.