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Investment via P-notes rises to Rs 84,810 cr in Aug after 3-month decline
After three consecutive monthly declines, investment in the Indian capital markets through participatory notes rose to Rs 84,810 crore at the end of August on the back of a drop in oil and commodity prices.
However, the month of September might be subdued for P-note participation as the Foreign Portfolio Investors (FPIs) have turned cautious, Sonam Srivastava, Co-Founder at Wright Research, Sebi-registered research investment adviser, said.
Participatory notes (P-notes) are issued by registered FPIs to overseas investors who wish to be a part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.
According to Securities and Exchange Board of India (Sebi) data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- stood at Rs 84,810 crore in August compared to Rs 75,725 crore in July-end.
In comparison, investment through the route was Rs 80,092 crore in June-end, Rs 86,706