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?

examrobotsa's picture

Submitted by examrobotsa on

Q: 17 (IAS/2019)

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?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,125,53,14,9,30,125

keywords: 

{'foreign portfolio investors': [0, 0, 0, 1], 'indian stock market': [0, 0, 0, 1], 'overseas investors': [0, 1, 0, 2], 'participatory note': [0, 0, 0, 1], 'promissory note': [0, 0, 0, 1], 'certificate': [0, 0, 1, 2], 'deposit': [1, 1, 0, 5], 'commercial paper': [0, 0, 0, 2]}

The instrument issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly is called Participatory Note.

A Participatory Note (PN) is a financial instrument used by registered Foreign Portfolio Investors (FPIs) to enable overseas investors to invest in Indian securities without directly registering themselves with the Securities and Exchange Board of India (SEBI). PNs are essentially offshore derivative instruments that are issued by FPIs to overseas investors, who want to invest in the Indian stock market without being registered with SEBI.