Investment through Participatory Note reaches 43-month high in October


Investment through Participatory Note at record level


  • Rs 1,06,403 crore was invested through P-notes in March 2018
  • Investment in equities has increased by about Rs 7,000 crore, though there has been a decline in bonds

New Delhi. Investment in the Indian market through Participatory Note (P-Note) increased to Rs 1.02 lakh crore by the end of October. This is the highest level of 43 months. P-notes are issued by Registered Foreign Portfolio Investors (FPIs) to foreign investors who wish to be a part of the Indian stock market without registering themselves directly. However, they have to go through a due process.

According to the Securities and Exchange Board of India (SEBI) data, the value of P-note investments in Indian markets (equity, debt and hybrid securities) stood at Rs 1,02,553 crore at the end of October. This is the highest level since March 2018. Then an investment of Rs 1,06,403 crore was made through P-notes. Abhay Agarwal, founder and fund manager of Sebi-registered Portfolio Management Services (PMS) company Piper Serica, said the total investment through P Note in October rose to a new high of Rs 1.02 lakh crore with an increase of Rs 5,000 crore. “More interestingly, the value of equities rose by about Rs 7,000 crore, while the value of investment in bonds fell by Rs 2,000 crore. This change in stance of FPIs is not surprising as they feel that the long-term,” he said. interest rates have come down. And under inflationary pressures, the Reserve Bank will be forced to increase rates in 2022.”


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