 "P-Notes. Illustration: binay sinha")
Foreign portfolio investors (FPIs) may look at participatory notes (p-notes) for making fresh investments in India, to sidestep the additional surcharge levied in the Budget.
The Centre ruled out a rollback of the “super-rich” tax on FPIs, organised as trusts or association of persons, last week. This could affect 40-50 per cent of FPIs. Of those likely to be impacted by the surcharge, 10-15 per cent may route their new investments through p-notes, said experts.
“P-notes are issued by foreign institutions that are typically companies. This is one way to plan around the surcharge hike, as the underlying is a
