P-Note Surge in Indian Markets | 28 Dec 2023

In November 2023, there was an increase in participatory note investments, reaching a total of ₹1.31 lakh crore.

Participatory Notes (P-Notes) are financial instruments used by foreign investors who wish to invest in Indian markets without directly registering with the market regulator, the Securities and Exchange Board of India (SEBI).
- They are issued by registered foreign institutional investors (FIIs) or their sub-accounts against underlying Indian securities.
While P-Notes offer flexibility and ease of investment, they have been a subject of regulatory scrutiny due to concerns about their potential use in money laundering, round-tripping, and lack of transparency.