Don't expect major changes in P-Notes participation from investors: Ambit Capital

The capital market regulator Securities and Exchange Board of India (Sebi) circulated a paper saying that it would like to tighten the participatory notes' (P-Notes) rules. Basically it wants to levy a fee of USD 1,000 for those who want to have overseas derivative instruments.

There is also a move to phase out participatory notes or rather overseas derivative instruments by 2020 in cases where they are not for hedging but the derivatives are entirely for speculative purpose.

In an interview to CNBC-TV18, Pramod Gubbi, Head-Equities at Ambit Capital shared his readings and outlook on P-Notes and the market.

He said that he does not expect major changes in P-Notes participation from investors.