NEW DELHI: Investments by rich overseas entities through 'Participatory Notes' into Indian markets rose to five-month high of Rs 1,41,710 crore (around USD 26 billion) in August, even as funds pumped into equities fell for the second consecutive month.
The surge in the investment appears to be largely into the derivatives market, although equities account for more than half of the funds pumped in by P-Note investors into Indian markets.
The P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to put their money into Indian markets through already registered FIIs, while saving on time and costs associated with direct registrations.
As per the latest data released by Sebi, the P-Note investments in Indian markets (equity, debt and derivatives) has reached highest level since March, when they had infused Rs 1,65,832 crore.
Source: The Economic Times