Investments through P-notes decline to Rs 69,670 cr at November end; Rs 52,749 cr invested in equities
The use of P-notes has been on a decline since 2017 and slumped to a nine-and-a-half year low of Rs 66,587 crore at the end of October last year.
Dropping for the fourth consecutive month, investments through participatory notes (P-notes) in the Indian capital market stood at Rs 76,611 crore at the end of September
Investments through participatory notes (P-notes) in the Indian capital market stood at Rs 79,088 crore in August-end, registering the third consecutive month-on-month decline
Investments through participatory notes in the domestic capital market rose to Rs 78,110 crore at the end of March, amid positive market sentiments
As per the data, the fund inflow through P-notes in October this year was the lowest since March 2009, when the cumulative value of such investments stood at Rs 69,445 crore.
The decline in investment could be attributed to several measures taken by the SEBI to stop the misuse of the controversy-ridden participatory notes, experts said.
Of the total investments made last month, P-note holdings in equities were at Rs 66,233 crore and the remaining in debt and derivatives markets.
P-notes are issued by registered FPIs to overseas investors who wish to be part of the Indian stock markets without registering themselves directly
Investments in the domestic capital market through participatory notes (P-notes) plunged to a nearly eight-and-a-half-year low of Rs 1.19 lakh crore in January-end amid stringent norms put in place by regulator Sebi to check misuse
Sebi decided to relax the entry norms for foreign portfolio investors willing to invest directly in Indian markets rather than through participatory notes.
If adopted, SEBI's plan would be the latest stringent action against controversial products created by banks to track Indian derivatives, shares and debt products and then sold to overseas investors.
Seeking to assuage concerns of investors, CBDT said GAAR provisions shall be effective from assessment year 2018-19 onwards and "shall not be invoked merely on the ground that the entity is located in a tax efficient jurisdiction".
In other words the suspicion could be round-trippers could have found comfort in Panama where names simply do not matter. Are FPIs guilty of giving quarters to such opaque investments from Panama? This could be the angle that the SIT wants to pursue.
According to Sebi data, the total value of P-Notes investment in Indian markets - equity, debt and derivatives - fell to Rs 2,10,731 crore at the end of June, from Rs 2,15,338 crore in May-end
The stricter rules on offshore derivatives will mainly impact so-called participatory notes
India's redrawn tax treaty with Mauritius to impose capital gains tax on investments from the island nation will not apply to existing holdings of P-Notes, Revenue Secretary Hasmukh Adhia said.
Total value of P-Notes investment in Indian markets stood at Rs 2.58 lakh crore, Rs 2.54 lakh crore, Rs 2.35 lakh crore and Rs 2.31 lakh crore in October, November, December and January, respectively
Investment through Participatory Notes (P-Notes) into India's capital markets has hit a 15-month low of Rs 2.35 lakh crore (about USD 16 billion) at the end of December
Investments via p-notes rebounds in September after falling continuously in preceding three months
Why Jaitley's threats won't work: All black money is in stock markets & real estate, too risky to touch
Sheer volume of investment in participatory notes (P-notes, estimated at around $43 billion last June) and private equity money flowing into real estate ($1.3 bn in January-June this year) suggests that illegal money held abroad may actually be substantially invested here