Investments through participatory noted touched a year high in October

1 Dec 2022 , 09:13 AM

At the end of October, participatory note investments in the Indian capital markets reached Rs97,784 crore, a record high for the year. Additionally, this was the third consecutive month that investments increased through this method.

Foreign investors who want to participate in the Indian stock market without registering themselves directly can do so by purchasing Participatory Notes (P-notes), which are issued by registered Foreign Portfolio Investors (FPIs). But they must perform their due diligence beforehand.

The value of P-note investments in Indian markets, including equities, debt, and hybrid securities, was Rs97,784 crore at month’s end, up from Rs88,813 crore at month’s end, according to Securities and Exchange Board of India (Sebi) statistics.

The amount invested in P-notes in October was the biggest it had been since October 2021, when it reached Rs1.02 lakh crore.

At the end of August, July, and June of this year, the amount invested via P-notes was Rs84,810 crore, Rs75,725 crore, and Rs80,092 crore, respectively.

P-note investment typically follows FPI investment trends. Investment in P-notes rises when there is a global environmental danger, and vice versa.

Up till October of this year, a total of Rs97,784 crore was invested through this channel, with Rs88,490 crore going into equity investments, Rs9,105 crore going into debt, and Rs190 crore going into hybrid instruments.

In comparison, during September of this year, Rs9,156 crore in debt and Rs79,418 crore in stocks were invested.

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