P-Notes investments fall to 33-mth low of Rs 1.8 lakh crore in Nov

Source: The Hitavada      Date: 23 Dec 2016 09:09:30


Dec 22,


INVESTMENTS in domestic capital markets through participatory notes (P-Notes) plunged to its lowest level in nearly three years to Rs 1.79 lakh crore in end-November. P-Notes are typical instruments issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to participate in Indian markets without registering themselves directly in the country to save time. But they still need to go through a proper due diligence process.

According to the data available with Sebi, the total value of P-Notes investment in Indian markets -- equity, debt and derivatives -- fell to Rs 1,79,648 crore in November-end, from Rs 1,99,987 crore at the end of October. This was the lowest level since February 2014 when the cumulative value of such investments stood at Rs 1,72,738 crore.

The investment through the route was Rs 2,12,509 crore, Rs 2,16,232 crore and Rs 2,12,179 crore at the end of September, August and July, respectively. In June, P-Notes investments plunged to Rs 2.10 lakh crore, which was the lowest in nearly two years, owing to a tight vigil on funds coming through the route.

The total value of P-Notes investment in Indian markets has fallen since October 2015 and the trend continued till February this year.

However, it saw a slight increase in March but dipped again in April. A slight uptick in investment through P-Notes was witnessed in May, however, it again plunged in June. Further, marginal increase was seen in July and August, while it again slipped in Sept and October.