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?
- A.Certificate of Deposit
- B.Commercial Paper
- C.Promissory Note
- D.Participatory Note
▶ Answer & Explanation
Correct answer: D. Participatory Note
Participatory Notes (P-Notes) are instruments issued by registered Foreign Portfolio Investors (FPIs) to overseas investors. These notes allow foreign investors to invest in the Indian securities market indirectly, without needing to register themselves with regulatory authorities like SEBI. They derive their value from the underlying Indian securities.
Source: UPSC gs1 2019