Multiple choice

The Securities and Exchange Board of India (SEBI) had 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

P-Notes stands for Participatory Notes, which are financial instruments used by foreign investors to invest in Indian securities without registering with SEBI. They are issued by FIIs to overseas investors who wish to invest in India but want to avoid regulatory procedures.

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