Till May 2022, out of total Rs 86,706 crore invested through this route, Rs 77,402 crore was in equity, Rs 9,209 crore was invested in debt market.
P-notes in the domestic capital market (P-note) has seen a decline in investment. Investment in the month of May as compared to April (Investment) came down to Rs 86,706 crore. This is the lowest level in any month of the year 2022. However, market experts are predicting that this trend will change in the coming one to two quarters and investment by foreign investors will start increasing once again. P-notes are issued by Registered Foreign Portfolio Investors (FPIs) to foreign investors who wish to invest in the Indian stock market without registering themselves directly. However, they will have to follow a standard procedure as per the rules.
How much was invested through P-notes
According to Dari data by SEBI, the value of investments through P-notes in Indian markets including equity, debt and hybrid securities stood at Rs 86,706 crore at the end of May. A month ago, at the end of April, this figure was Rs 90,580 crore. Investment in March was Rs 87,979 crore, in February it was Rs 89,143 crore and in January it was Rs 87,989 crore. That is, the value of investment through P Notes has been increasing and decreasing so far in 2022. However, for the first time in May, it has reached below Rs 87 thousand crore. According to the data, out of total Rs 86,706 crore invested through this route till May 2022, Rs 77,402 crore was in equities, Rs 9,209 crore in debt and Rs 101 crore in hybrid securities. In the same April, there was an investment of Rs 81,571 crore in equity and Rs 8,889 crore in debt. It is clear from the data that the decline in the total investment was seen due to the decrease in investment in equities.
Reference Link:- https://www.newsncr.com/business/foreign-investment-in-the-domestic-market-reduced-through-p-notes-the-impact-of-pressure-in-the-stock-market/