ALSO READMarket investments via P-notes at 7-month high of Rs 1.8 lakh cr in May HSBC, UBS stop issuing P-Notes as Sebi, govt step up clampdown A peek inside Sebi meeting today Sebi lines up reforms for market, to check black money flow via P-notes P-note investments hit 4-month high at Rs 1.78 lakh crore in March
It had hit 7-month high of Rs 1,80,718 crore at the end of May, highest since October last year, when the cumulative value of such investments stood at Rs 1,99,987 crore.
P-notes are issued by registered foreign portfolio investors to overseas players who wish to be a part of the Indian stock markets without registering themselves directly. They, however, need to go through a proper due diligence process.
Also, the regulator has prohibited FPIs from issuing such notes where the underlying asset is a derivative, except those which are used for hedging purposes.
This follows after the board of Securities and Exchange Board of India (Sebi) last month approved a proposal in this regard.
The new measures follow a slew of other steps taken by the regulator in the recent past.
The decision was part of efforts to strengthen the regulatory framework for P-Notes, which have been long seen as being possibly misused for routing of black money from abroad.