Stock decline creates room for new P-notes

The Securities and Exchange Board of India (Sebi) had banned the issue of derivative P-notes on October 25 last year and restricted the issue of P-notes up to 40 per cent of the assets under custodians.  Since then, more than 200 new FIIs and over 500 sub- accounts have registered with the market regulator.  With the P-note holders registering themselves, many P-notes have been regularized and most FIIs now have the leg room to issue 5 per cent incremental P-notes and fresh P-notes against cancellations.