BROWSE

Participatory Notes

Definition

Participatory Notes commonly known as P-Notes or PNs are instruments issued by registered foreign institutional investors to overseas investors, who wish to invest in the Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India - SEBI.

What are 'Participatory Notes'

Participatory notes, also referred to as "P-notes," are financial instruments used by investors or hedge funds that are not registered with the Securities and Exchange Board of India (SEBI) to invest in Indian securities. Any dividends or capital gains collected from the underlying securities go back to the investors. Indian regulators are against participatory notes because they fear that hedge funds acting through participatory notes will cause economic volatility in India's exchanges.

Explaining 'Participatory Notes'

Foreign institutional investors (FIIs) provide quick money entering the Indian capital market. Because of the short-term nature of investing, regulators have fewer guidelines for FIIs. To invest in Indian stock markets without the hassle of involvement with the regulatory approval process, FIIs trade P-notes.

What Participatory Notes Are

P-notes are offshore derivative instruments with Indian shares as underlying assets. Brokers and FIIs registered with SEBI issue the instruments and make investments on the FII’s behalf. Brokers must report their P-note issuance status to SEBI each quarter. The notes allow foreign investors with high net worth, as well as hedge funds and other investors, to invest in Indian markets without registering with SEBI. Investors save time, money and scrutiny associated with direct registration.

Pros and Cons of Participatory Notes

P-notes are easily traded overseas through endorsement and delivery. They are popular because investors anonymously take positions in Indian markets, and hedge funds anonymously carry out their operations. Some entities route their investments through P-notes to take advantage of certain countries’ tax laws.


Further Reading


The interesting story of participatory notes in India
www.inderscienceonline.com [PDF]
… It is important to note that Nifty losses have to be paid via the … INDIAN REGULATORS PROPOSAL ON PARTICIPATORY NOTES AND IMPACT ON PORTFOLIO FLOWS The SEBI's recent discussion … hold, off-shore derivative instruments such as PNs, equity-linked notes, or any …

Participatory politics, social cooperation, and economic stabilityParticipatory politics, social cooperation, and economic stability
pubs.aeaweb.org [PDF]
… It is important to note that Nifty losses have to be paid via the … INDIAN REGULATORS PROPOSAL ON PARTICIPATORY NOTES AND IMPACT ON PORTFOLIO FLOWS The SEBI's recent discussion … hold, off-shore derivative instruments such as PNs, equity-linked notes, or any …

Indian Securities Market & Participatory notes: A corporate quandaryIndian Securities Market & Participatory notes: A corporate quandary
www.indianjournals.com [PDF]
… It is important to note that Nifty losses have to be paid via the … INDIAN REGULATORS PROPOSAL ON PARTICIPATORY NOTES AND IMPACT ON PORTFOLIO FLOWS The SEBI's recent discussion … hold, off-shore derivative instruments such as PNs, equity-linked notes, or any …

The promotion of participatory governance in the EU's external policies: compromised by sectoral economic interests?The promotion of participatory governance in the EU's external policies: compromised by sectoral economic interests?
www.tandfonline.com [PDF]
… It is important to note that Nifty losses have to be paid via the … INDIAN REGULATORS PROPOSAL ON PARTICIPATORY NOTES AND IMPACT ON PORTFOLIO FLOWS The SEBI's recent discussion … hold, off-shore derivative instruments such as PNs, equity-linked notes, or any …

An Analytical Study on'Use of Participatory Notes in Indian Equity Markets and Recent Regulatory Changes'An Analytical Study on'Use of Participatory Notes in Indian Equity Markets and Recent Regulatory Changes'
papers.ssrn.com [PDF]
… It is important to note that Nifty losses have to be paid via the … INDIAN REGULATORS PROPOSAL ON PARTICIPATORY NOTES AND IMPACT ON PORTFOLIO FLOWS The SEBI's recent discussion … hold, off-shore derivative instruments such as PNs, equity-linked notes, or any …


Leave a Reply

Your email address will not be published. Required fields are marked *

Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man