Participatory Notes and Securities

Participatory Notes (P-Notes) are instruments issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to invest in Indian securities without undergoing the registration process themselves. P-Notes represent ownership of underlying Indian securities. Certificates of Deposit are debt instruments issued by banks; Commercial Paper is short-term corporate debt; Promissory Notes are negotiable instruments. P-Notes specifically serve as a conduit for indirect foreign investment, allowing offshore investors to gain exposure to Indian markets through registered FPI intermediaries. > Participatory Notes: FPI-issued instruments enabling indirect offshore investment in Indian securities.