Investment in the Indian capital market through participatory notes (P-notes) reached Rs 1.5 lakh crore at the end of February. This is the highest level in the last six years. This figure includes investments made through P-notes in shares, debt and hybrid securities. Foreign Portfolio Investors (FPIs) registered with SEBI issue P-Notes to foreign investors who want to participate in the Indian stock market without registering themselves. However, for this they have to go through proper investigation.
Value of investment from P-notes
According to the news, according to the latest data of Securities and Exchange Board of India (SEBI), the value of investment through P-notes in Indian markets – equity, debt and hybrid securities was Rs 1,49,517 crore at the end of February, while at the end of January it was Rs. It was Rs 1,43,011 crore. The amount has reached the highest level since June 2017, when inflows from P-notes stood at Rs 1.65 lakh crore, Sebi data showed.
Credit for increase in investment in February
The rise in P-notes generally follows the trend of FPI flows. Market experts said the increase in investment in February can be attributed to strong corporate earnings and the positive economic growth trend recorded during the December quarter. Of the total Rs 1.5 lakh crore infused through this route till February, Rs 1.27 lakh crore was invested in equities, Rs 21,303 crore in debt securities and Rs 541 crore in hybrid securities.
Apart from this, the assets held by foreign portfolio investors increased to Rs 68.55 lakh crore at the end of February, which was Rs 66.96 lakh crore at the end of January. FPIs made a net investment of Rs 1,539 crore in the Indian stock market and Rs 22,419 crore in the debt or bond market in February.
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