Which derivative instrument is used by foreign investors who wish to invest in India?

P - Notes

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Solution

The correct option is A P - Notes
Participatory Notes commonly known as P-Notes are instruments issued by registered foreign institutional investors (FII) to overseas investors, who wish to invest in the Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India – SEBI. SEBI permitted foreign institutional investors to register and participate in the Indian stock market in 1992.

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Similar questions

Q. ____ is a foreign currency denominated derivative instrument in the form of depository receipt created outside India and issued to non-resident investors.

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Q. The investments made by foreign investors in a domestic company are a part of which of the following?

14. Consider the following statements,
1] Foreign direct investment (FDI) is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased.

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Which of the above statements is/are correct?

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