P-Notes investment reached 27-month high in November

Investment in the Indian capital market through participation papers or Participatory Notes (P-Notes) reached a 27-month high of Rs 83,114 crore in November. P-Notes increased investment in the second quarter as corporate earnings improved and liquidity improved.

What are P-Notes?

P-Notes are issued by Registered Foreign Portfolio Investors (FPIs) to foreign investors who wish to become part of the Indian stock market without being directly registered. However, for this, they have to go through a fixed process.

P-Notes investment increased to 83,114 crore in November

According to data from the Securities and Exchange Board of India (SEBI), P-Notes investment in Indian markets, including equity, debt and hybrid securities, increased to Rs 83,114 crore at the end of November. The figure stood at Rs 78,686 crore at the end of October.

Highest level since August 2018

Significantly, this is the highest level of investment since August 2018, when a total investment of Rs 84,647 crore was made through this route. At the end of September 2020, investment through P-Notes was reduced to Rs 69,821 crore.