P-Note investments hit a 9-mth high of $32.4 bn in Nov
10 Jan 2013
Foreign investors raised $32.4 billion (around Rs1,77,000 crore) in participatory notes in November 2012, as high networth individuals (HNIs) and hedge funds from abroad continued to bet on Indian shares.
The total value of P-Note investments in Indian markets (equity, debt and derivatives) rose to $32.4 billion (about Rs1,77,164 crore) at the end of November, up from $32 billion (Rs1,75,829 crore) in October and a near-three year low of $23.6 billion (Rs1,28,895 crore) in May 2012, data released by the Securities and Exchange Board of India (SEBI) showed.
The November figure is the highest level since February, when the cumulative value of such investments stood at $33.43 billion (Rs1,83,151 crore).
Percentagewise, however, investments through P-Notes declined to 13.7 per cent in November from 14.4 per cent in the previous month.
The total value of P-Notes issued with derivatives as underlying (excluding exposure to equity derivatives), was at $17.3 billion (Rs94,658 crore) at the end of November, according to the SEBI data.
High networth individuals (HNIs) hedge funds and other foreign investors use P-Notes to invest in Indian markets through registered foreign financial institutions (FIIs).