Investment in P-notes hits 37-month high in June

New Delhi: Investments in the Indian capital markets through participatory notes (P-notes) rose to Rs 92,261 crore till the end of June, making it the highest level in 37 months.

This also marks the third consecutive monthly growth.

P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.

According to Sebi data, the value of P-note investments in Indian markets -- equity, debt and hybrid securities -- rose to Rs 92,261 crore in June-end from Rs 89,743 crore in May-end.

Prior to that, the investment level was at Rs 88,447 crore at April-end and Rs 89,100 crore in March-end.

Of the total Rs 92,261 crore invested through the route till June, Rs 83,792 crore was invested in equities, Rs 8,069 crore in debt and Rs 392 crore in hybrid securities.

June 2021 saw the highest level of investment since May 2018, when fund inflow through such route stood at Rs 93,497 crore, and experts said the trend indicated growing confidence of overseas investors into domestic markets.

Green Portfolio co-founder Divam Sharma said FPIs have infused staggering amount of money into equity markets

in June.