Multiple choice

The Securities and Exchange Board of India recently imposed a restriction on money flow in equity through P-Notes. What is the full form of P-Notes?

  1. Permanent Notes

  2. Purchase Notes

  3. Participatory Notes

  4. Private Notes
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Participatory Notes (P-Notes) are financial instruments used by foreign investors to invest in Indian stock markets without registering with SEBI. They are issued by foreign institutional investors to their overseas clients who wish to invest in India. SEBI has periodically tightened regulations on P-Notes to prevent misuse and improve transparency in foreign investment flows.

Keep practicing — related questions