P-note derivative assets plunge 82% since July

Experts say eligibility and other criteria for a p-note subscriber are now at par with those for an onshore investor

The share of participatory notes (p-notes) in the country's total foreign portfolio assets hit a new all-time low of 4.1 per cent in August. 

Their investments in derivatives have nosedived 82 per cent since July, after the ban on naked positions. P-note assets in the derivatives segment were Rs 8,645 crore in end-August, down from Rs 47,674 crore in end-May.

In absolute terms, the value of p-note investment in domestic equity, debt and derivatives (notional) stood at Rs 1.25 lakh crore at the end of August, down 42 per cent in one year, show data from the Securities and Exchange Board of