Investments into domestic capital markets through participatory notes (P-Notes) dropped to Rs 2.12 lakh crore in September after hitting a five months high of Rs 2.16 lakh crore at the end of August. P-Notes are typically instruments issued by registered foreign portfolio investors to overseas investors who wish to invest in Indian markets without registering themselves directly in India to save on time. But they still need to go through a proper due diligence process. According to Sebi data, the total value of P-Notes investment in Indian markets equity, debt and derivatives -- declined to Rs 2,12,509 crore in September after hitting a five months high of Rs 2,16,232 crore at the end of August. Prior to that, it was Rs 2,12,179 crore in July. In June, investments through P-Notes had plunged to Rs 2.10 lakh crore, which was the lowest level in nearly two years owing to a tight vigil on funds coming through this route. The board of Sebi, in May, tightened norms to check any misuse of controversy-ridden P-Notes by making it mandatory for users of these overseas instruments to follow Indian anti-money laundering law and report any suspicious transactions immediately. The total value of P-Notes in Indian markets has fallen since October 2015 and the trend continued till February this year.