P-notes

Published on 15 Apr 2025

• Recently, registered Foreign portfolio investors (FPIs) domiciled at the GIFT International Financial Services Centre (IFSC) have been allowed to issue participatory notes (p-notes).
• P-notes are issued by registered foreign FPIs to overseas investors to invest in the Indian stock market without registering themselves directly. 
• P-Notes act like a substitute for underlying Indian company shares. 

Benefits: 

✅ Avoids the hassle of registering with SEBI and offers anonymity.

✅ More choices for investors for investing in Indian stocks.

Challenge:

  Lack of transparency, Uncontrolled money in Indian stock, etc

Keywords:

Investment Foreign Investment Foreign portfolio investors Financial market Stock market Private invest models Investment models