The document discusses participatory notes (P-notes), which are financial instruments used by foreign investors to invest in Indian securities markets without registering directly with the Securities and Exchange Board of India (SEBI). P-notes are issued by registered Foreign Institutional Investors (FIIs) to overseas investors, with the value based on underlying Indian stocks. Dividends and capital gains from these underlying assets go to overseas investors via broking houses. While not requiring registration with SEBI, FIIs must register. P-notes provide anonymity and were widely used before SEBI proposed curbs in 2007.