P-notes investment hits over 7-year low of Rs 1.25 lakh cr

Investments in the domestic capital market through participatory notes (P-notes) plunged to 7.5 years low of 1.25 lakh crore rupees at August 2017, due to stringent norms put in place by SEBI. The total value of P-notes investments in the Indian markets (equity, debt, and derivatives) had hit a five-year low of 1.35 lakh crore rupees at the end of July. The amount of Foreign Portfolio Investments (FPI) via P-Notes decreased from a high of 55% (October 2007) to 4.1% (August 2017). Total investments in August, P-note holdings in equities stood at 88,911 crore rupees, while the rest were in debt and derivatives markets.