P-notes, or participatory notes, allow foreign investors who do not want to register directly in India to invest in the Indian market. Registered Foreign Portfolio Investors issue P-notes, which are offshore derivative instruments that give foreign investors exposure to Indian stocks, bonds, and other securities without having to register as an FPI in India. P-note holdings hit a five-year high of 11.3 trillion rupees in June 2022, up from 10.4 trillion rupees in May, as foreign investments in India increased.

1. June
1,11,291 Crore
May
1,04,585 Crore
April
95, 911 Crore
March,
88,600 Crore
June May April March
Investment
 What are participatory notes(p-notes) ………….?
 P-notes are Offshore Derivative Instruments(ODIS) means people that not live in India
but wants to invest in India here ODIS help them investing in India. They purchase P-
Notes form FPIS and then they not require direct registration in India & can Invest in
(Indian Securities, shares, government bond, corporate bond etc.).
 P-Notes issued by- Registered Foreign Portfolio Investors(FPIS).
 Why P-Notes…?
 P-Notes by SEBI for those people who wants to invest in India but doesn’t wants to full
fill the stringent registration requirement. They relaxed requirement as compare to
registration of Foreign Portfolio Investors(FPI).
 Recent in News………..
 Participatory Investment touch over 5 year high of 1.13 lakh crore at June end.
Fig-Column Shows the Increase in recent FDI inflows.