Home » Ministries » Finance » Investment via P-Notes surges to $43 billion

Investment via P-Notes surges to $43 billion


  • Investments into Indian markets through participatory notes (P-Notes) has surged to the highest level in over seven years at Rs 2.72 lakh crore (over USD 43 billion) at the end of March 2015.
  • P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow such investors to invest in Indian markets through registered Foreign Institutional Investors (FIIs).
  • This is the highest investment since February 2008, when the cumulative value of such investments stood at Rs 3.23 lakh crore.
  • The quantum of FII investments through P–Notes too climbed to 11.3 per cent last month from 11.1 per cent in February.
  • P-Notes have been accounting for mostly 15-20 per cent of the total FII holdings in India since 2009, while it used to be much higher — in the range of 25-40 per cent — in 2008.

Advantage & Disadvantage

  • This saves time and costs for investors, but  this route can also be used for round tripping of black money.

Check Also

PC: thehindu

Dairy Entrepreneurship Development Scheme ( DEDS)

DEDS has been launched by Department of Animal Husbandry, Dairying and Fisheries, Department of Agriculture, ...

Leave a Reply

Your email address will not be published. Required fields are marked *