P-notes investment hits 5-year high of Rs 1.04L crore in May

New Delhi: Fuelled by the resilience of the Indian economy, investment in the domestic capital markets through participatory notes rose to Rs 1.04 lakh crore in May-end, the highest level in over five years.

This includes the value of P-note investments in Indian equity, debt, and hybrid securities.

Also, this marks the third consecutive monthly increase in the investment level through this route, data with the Securities and Exchange Board of India (Sebi) showed. Participatory notes (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 -- stood at Rs 1,04,585 crore at the end of May, as compared to Rs 95,911 crore in April-end.

In comparison, the investment through the route was Rs 88,600 crore in March-end, Rs 88,398 crore in February-end and Rs 91,469 crore in January-end.

The flow in the month of May was the highest level since March 2018, when investment through the route stood at Rs 1.06 lakh crore.