Securities and Exchange Board of India (SEBI) in its latest data has showed that the share of foreign portfolio investments (FPIs) in domestic capital markets through participatory notes (P-notes) increased to Rs 57,100 crore at the end of April after falling to over 15-year low of Rs 48,006 at the end of the preceding month. The lower figure in March comes amid significant volatility in broader markets on concerns over coronavirus-triggered recession.
Of the total Rs 57,100 crore invested through the route till April, Rs 46,165 crore was invested in equities, Rs 10,619 crore in debt, Rs 177 crore in the derivatives segment and Rs 139 crore in hybrid securities. P-notes investment stood at Rs 68,862 crore, Rs 67,281 crore and 64,537 crore at the end of February 2020, January 2020 and December 2019, respectively. However, it was at Rs 69,670 crore at November-end last year.
P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. However, they need to go through a due diligence process.