Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly ?

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CollectorBabu · Accepted Answer

Correct Answer: Participatory Note. Participatory Note or P-note is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly. The underlying Indian security instrument may be equity, debt, derivatives or may even be an index. • A promissory note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money, either on-demand or at a specified future date. • Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. CPs are short-term instruments and the maturity period varies from seven days to up to one year. It was introduced to enable highly rated corporate borrowers to diversify their sources of short-term borrowings, and also to provide an additional instrument to investors. • Certificate of Deposits - It is a saving certificate with a fixed maturity date at a fixed interest rate. It is issued by commercial banks and financial institutions. It is issued in the form of a promissory note in exchange of funds deposited in banks for a specified period.

Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly ?

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