Money Banking

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. Certificate of Deposit
  2. Commercial Paper
  3. Promissory Note
  4. Participatory Note

Answer

Participatory notes also referred to as P-Notes, or PNs, are financial instruments required by investors or hedge funds to invest in Indian securities without having to register with the Securities and Exchange Board of India (SEBI).

The correct option is D.