Investments through P-notes have been continuously declining since June, according to the data.
Dropping for the fourth consecutive month, investments through participatory notes (P-notes) in the Indian capital market stood at Rs 76,611 crore at the end of September. 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 after going through a due diligence process.
Investments through P-notes have been continuously declining since June, according to the lates. The use of P-notes has been on a decline since 2017 and slumped to a nine-and-a-half year low of Rs 66,587 crore at the end of October.
In July 2017, markets regulator Sebi has notified stricter P-notes norms stipulating a fee of $1,000 that will be levied on each instrument to check any misuse for channelising black money.