Participatory notes (P-notes) are financial instruments that allow foreign investors to invest in India’s stock market without registering with the Securities and Exchange Board of India (SEBI). P-notes are issued by registered foreign institutional investors (FIIs) to overseas investors.
- How they work
- P-notes acts as a substitute for shares of Indian companies.
- History
- SEBI introduced P-notes back in 2000 to allow foreign investors to enter the Indian market without registering as FIIs.