UPSC Previous Year Question | Prelims GS | 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?

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

Answer

Correct Answer

Participatory Note

Explanation

Participatory Notes are offshore derivative instruments issued by registered FPIs to overseas investors who wish to invest in Indian securities without registering directly with SEBI.

Topics: capital market and foreign investment, financial markets, indian economy, participatory notes (p-notes)