 "P-note issuers rejig business model")
With participatory notes (P-notes) losing their appeal as an investment vehicle, most banks that issue P-notes to foreign clients are changing their business model to shore up margins.
According to sources, most banks have stopped the “non-leveraged” aspect of their business, and are now focussing their attention only on the part that involves financing.
The P-notes business, the way it is generally understood, does not involve a financing or funding component. Here’s how it typically works. Investors approach a bank (P-note issuer) to take exposure to Indian stocks. The bank issue p-notes and in turn hedges itself by executing the trade in
