Give overseas HNIs direct access to Indian markets: Survey

The government should consider allowing high-net worth individuals from abroad to invest directly here through Indian market intermediaries, according to the Economic Survey.    

Noting that such a measure could put an end to the indirect ways like Participatory Notes, the Survey said a potential financial market policy option for the government could be giving direct access to the HNIs.     

"High Net Worth Individuals should be allowed to register and invest directly through authorised Indian investment intermediaries. This will allow ban of indirect ways of investment such as P Notes," the survey tabled in Parliament today said.     

P-Notes are a tool used by foreign investors, mostly HNIs, to participate in the Indian market. The investors abroad purchase from the Indian brokers these P-Notes, which give them ownership of the shares purchased by them, but their identities remain under wraps.     

The policy makers and regulators have been in favour of banning P-Notes as there have been concerns over the anonymity of the investors.