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P-notes investment surges to 31-month high of Rs 87,132 crore in December
Jan-20-2021

Investment through participatory notes (P-notes) in the domestic capital market rose to a 31-month high of Rs 87,132 crore at December-end, reflecting the bullish stance of FPIs. According to Securities and Exchange Board of India (Sebi) data, the value of P-note investments in Indian markets - equity, debt, and hybrid securities - increased to Rs 87,132 crore till December-end from Rs 83,114 crore at the November-end.

This is the highest level of investment since May 2018, when the fund inflow through this route stood at Rs 93,497 crore. P-notes investment was Rs 78,686 crore at the end of October 2020, although it had declined to Rs 69,82 crore in September after witnessing growth since March. The investment level was Rs 74,027 crore in August, Rs 63,228 crore (July), Rs 62,138 crore (June), Rs 60,027 crore (May) and Rs 57,100 crore (April).

The investment level fell to an over 15-year-low of Rs 48,006 crore at the end of March amid significant volatility in broader markets on concerns over the coronavirus-triggered crisis. 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. They, however, need to go through a due diligence process.

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