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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) declined to Rs 80,092 crore till June-end, making it the lowest level in 20 months, on aggressive rate hike by the US Federal Reserve. According to data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- stood at Rs 80,092 crore at June-end compared to Rs 86,706 crore at May-end.

This was the lowest level since October 2020, when investment through the route was at Rs 78,686 crore. The June figure also marks the second consecutive monthly decline in investment numbers. Of the total Rs 80,092 crore invested through the route till June 2022, Rs 70,644 crore was invested in equities, Rs 9,355 crore in debt, and Rs 92 crore in hybrid securities.

In comparison, Rs 70,644 crore was invested in equities and Rs 9,355 crore in debt during May. 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. They, however, need to go through a due diligence process.