Question

    Foreign Investors who do not want to be registered with SEBI as Foreign Portfolio Investors but are desirous of making investments in Indian Stock markets can do through

    A Indian depository receipts Correct Answer Incorrect Answer
    B Participatory Notes Correct Answer Incorrect Answer
    C Fixed derivatives Correct Answer Incorrect Answer
    D Hedge Funds Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Participatory Notes or P-Notes (PNs) are financial instruments issued by a registered foreign portfolio investor (FPI) to an overseas investor who wishes to invest in Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India (SEBI). They are called Offshore derivative Instruments.

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