New Delhi: Investments through participatory notes (P notes) in the Indian capital market fell to Rs 89,100 crore at the end of March, after reaching a 33-month high the previous month.
P Notes are issued by registered foreign portfolio investors (REITs) to foreign investors who wish to be part of the Indian stock market without registering directly.
However, they must go through a due diligence process.
According to Sebi data, the value of P-note investments in Indian markets – stocks, debt and hybrid securities – fell to Rs 89,100 crore in March-end from Rs 91,658 crore in February-end.
Previously, the investment level was Rs 84,916 crore at the end of January.
Of the total of Rs 89,100 crore invested by road up to March, Rs 81,236 crore was invested in stocks, Rs 7,306 crore in debt and Rs 559 crore in hybrid securities.
February 2021 saw the highest level of investment since May 2018, when cash inflows through this route amounted to Rs 93.497 crore, and experts said the trend indicated increasing confidence from foreign investors. in national markets.
However, Divam Sharma, co-founder of Green Portfolio, had warned that the second wave of COVID and rising bond yields in the United States could become a drag on REIT flows in the near term.
Assets in custody of REITs reached Rs 44.63 lakh crore in March-end of Rs 44.06 lakh crore at end of February.
Meanwhile, REITs infused over Rs 17,000 crore into the financial markets last month.