Participatory note pain lingers for Sebi

 In the aftermath of the Ketan Parekh-related market volatility in March 2001 and rampant use of participatory notes (PN) by the Mauritius-registered entities operating in the domestic markets, which, in turn, were owned by certain corporates in India, Sebi had issued a circular in October 2001 saying that though FIIs could trade in PNs, they had to disclose the name of their clients.

 Most of the large foreign brokerages operating in the country do business on behalf of these entities among which are hedge funds too.

 However, Sebi sources said that disclosure of buyers