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After hitting 43-month high in the preceding month, investments in Indian capital market via participatory notes (P-notes) dropped to Rs 94,826 crore till November-end. 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.

According to Securities and Exchange Board of India data, the value of P-note investments in Indian markets - equity, debt and hybrid securities - was at Rs 94,826 crore by November end as compared to Rs 1,02,553 crore by October end. Of the total Rs 94,826 crore invested through the route till November, Rs 84,915 crore was invested in equities, Rs 9,605 crore in debt, Rs 306 crore in hybrid securities. P-notes flows have been volatile over the last four months in line with the volatility of the global and Indian markets.

The month of October saw the highest level since March 2018, when P-notes had invested to the tune of Rs 1,06,403 crore. At the end of September this year, the investment level was at 97,751 crore, Rs 97,744 crore by August-end. The figure for July was revised to Rs 85,799 crore from Rs 1,01,798 crore posted earlier. Prior to that, investment level was at Rs 92,261 crore by June-end, Rs 89,743 crore by May-end, Rs 88,447 crore at April-end and Rs 89,100 crore by March-end.