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The Securities and Exchange Board of India (SEBI) in its latest data has showed that investment in the Indian capital markets through participatory notes (P-notes) dropped to Rs 86,706 crore until end-May from the preceding month. P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly. However, they need to go through a due diligence process.

According to the data, the value of P-note investments in Indian markets - equity, debt, and hybrid securities - stood at Rs 86,706 crore end-May, compared with Rs 90,580 crore end-April. In March, the investment was at Rs 87,979 crore. It was Rs 89,143 crore in February and Rs 87,989 crore in January.

Of the total Rs 86,706 crore invested through the route until May, Rs 77,402 crore was invested in equities, Rs 9,209 crore in debt, and Rs 101 crore in hybrid securities. In comparison, Rs 81,571 crore was invested in equities and Rs 8,889 crore in debt during April.