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With a drop in oil and commodity prices, investment in the Indian capital markets through participatory notes rose to Rs 84,810 crore at the end of August, after three consecutive monthly declines. Participatory notes (P-notes) are issued by registered 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 (SEBI) data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- stood at Rs 84,810 crore in August compared to Rs 75,725 crore in July-end. In comparison, investment through the route was Rs 80,092 crore in June-end, Rs 86,706 crore in May-end and Rs 90,580 crore at the end of April.

Of the total Rs 84,810 crore invested through the route till August 2022, Rs 75,389 crore was invested in equities, Rs 9,330 crore in debt, and Rs 91 crore in hybrid securities. In comparison, Rs 66,050 crore was invested in equities and Rs 9,592 crore in debt during July this year.