Govt not to regulate PNs: Chidambaram

A day after the government curtailed overseas borrowings by companies, Finance Minister P Chidambaram said there were no plans to regulate participatory notes.

"One of the purposes is to moderate the inflow of capital. The claim that the curbs will hurt investments is exaggerated," he said.

The notes, which are typically derivatives that change in value depending on the performance of the underlying securities, allow hedge funds to invest in the country without having to register with the stock market regulator.