According to the latest data released by the Securities and Exchange Board of India (Sebi), the total value of P-Note investments in Indian markets (equity debt and derivatives) rose to 1,68,263 crore at the end of May. At the end of April, foreign investments into Indian markets through P-Notes stood at Rs. 1.57 lakh crore.
P-Notes, Investments into Indian shares through participatory notes, is a preferred route for high networth individuals (HNI) and hedge funds. The may increase is a six month high.
Notably, investments into Indian shares through P-Notes was at Rs.1.77 lakh crore in November and Rs. 1.75 lakh crore in October on government’s policy reform measures and initiatives to address tax-related issues.
The quantum of FIIs investments through P-Notes increased to 11.69 per cent in May from 11.32 per cent in the previous month.
Till a few year-ago, the P-Notes used to account for more than 50 per cent of total FII investments, but their share has fallen after Sebi tightened disclosure and other regulations for such investments.
FIIs infused Rs. 5,969 crore ($1.13 billion) in the debt market last month.
FIIs, the key drivers of Indian markets, pumped in Rs. 22,169 crore (around $4 billion) in the Indian stock market in May after falling to a 16-month low in April.
Source – PTI