Multiple choice

The contract notes that are issued by Foreign Institutional Investors (FIIs) to their clients (not registered with SEBI), investing in Indian stock market are called as

  1. depository receipts

  2. derivatives

  3. options

  4. participatory notes
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Participatory notes, commonly known as P-Notes or PNs, are instruments issued by registered Foreign Institutional Investors (FII) to overseas investors, who wish to invest in the Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India (SEBI).

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