gs1medium

Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

  1. A.Certificate of Deposit
  2. B.Commercial Paper
  3. C.Promissory Note
  4. D.Participatory Note
▶ Answer & Explanation

Correct answer: D. Participatory Note

Participatory Notes (P-Notes) are instruments issued by registered foreign institutional investors (FIIs) to overseas investors. They allow investors to participate in the Indian stock market indirectly, by investing in securities and derivatives registered in India, without undergoing the process of direct registration with regulatory authorities like SEBI. This route provides a simpler way for offshore investors to gain exposure to Indian equities.

Source: UPSC gs1 2019

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