Equity holdings through P-Notes up by Rs 15,000 crore in May

Debt, Derivative Exposure Too Showed A Rise

The value of foreign investments through participatory notes (P-Notes) was up again in May, after registering a fall in the previous month.

The total amount of foreign investments held through this mechanism showed an increase in across categories, including debt, equity and derivative instruments. The total amount of equity investments held through P-Notes was up by over Rs 15,735 crore, regulatory data showed.

Equity investments through P-Notes was up from Rs 1,18,093 crore to Rs 1,33,828 crore. Debt investments were up from Rs 9,535 crore to Rs 11,430 crore. Derivative exposure through the route rose from Rs 59,858 crore to Rs 66,482 crore.

P-Notes or offshore derivative instruments can be used by foreign investors who have not registered with the Securities and Exchange Board of India (Sebi) to invest in Indian equities.

The total proportion of all foreign portfolio investments through the P-Note route, including equity, debt and derivatives; was up from 11.7 per cent to 12 per cent.  

The use of the P-Note route had increased for three straight months since the beginning of the calendar year. Proportion of P-Notes as a total of foreign investor assets rose from 11.4 per cent in December to 13 per cent in March. It had fallen to 11.7 per cent in April.