P-Notes investment rises to Rs 1.62 lakh crore in Jan

Foreign investments into Indian markets through participatory notes (P-Notes), a preferred route for HNIs and hedge funds, stood at Rs 1.62 lakh crore (about $30 billion) in January.

According to the latest data released by the Securities and Exchange Board of India (Sebi), the cumulative value of P-Note investments in Indian markets (equity, debt and derivatives) was at Rs 1,62,139 crore at the end of January.

In December, P-Note investments in Indian markets was at Rs 1.51 lakh crore (around $28 billion).

P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to invest in Indian markets through registered Foreign Institutional Investors (FIIs), while saving on time and costs associated with direct registrations.

Notably, investments into Indian shares through P-Notes was at Rs 1.77 lakh crore in November and Rs 1.75 lakh crore in October on policy reform measures taken by the government and its initiatives to address tax-related issues.

Besides, the value of P-Notes issued with derivatives as underlying, was at Rs 1.05 lakh crore at January-end.

The quantum of FIIs investments through P-Notes increased to 11.83% in January from 11.3% in the previous month.

FIIs, the key driver of Indian markets, poured in Rs 22,000 crore ($4 billion) into the country's equities in January. Additionally, FIIs also infused $550 million in debt market during the period under review.