What are participatory notes?

Participatory notes (PNs) or P-notes as they are called in market parlance, are offshore derivative instruments issued by foreign broking houses to overseas investors who want an exposure to the Indian capital market without registering with SEBI.

December 12, 2011 / 16:03 IST

Participatory notes (PNs) or P-notes as they are called in market parlance, are offshore derivative instruments issued by foreign broking houses to overseas investors who want an exposure to the Indian capital market without registering with SEBI.

The foreign broking house buys the shares on behalf of the overseas investor and issues it P-notes, with the shares being the underlying. The shares are held by the foreign brokerage

first published: Dec 12, 2011 10:40 am

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