INVESTMENTS THROUGH P-NOTES RISING IN INDIA

Investments through participatory notes (P-notes), typically used by foreign investors not directly registered with the stock market regulator in India, touched a near two-year high in October.

These investments stood at Rs 183, 862 crore at October-end, the highest since May 2011. The P-note route is generally used by wealthy investors abroad, hedge funds and other investors who want to participate in the Indian markets but without being registered with the Securities and Exchange Board of India (Sebi) as foreign institutional investors (FIIs).

Flows into Indian equities through the P-note route have been rising, due to currency depreciation and continuation of the stimulus programme of the US Federal Reserve, say market watchers