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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) rose to Rs 87,813 crore at the end of September, making it the second consecutive monthly increase, as the country witnesses the best growth and earnings among emerging markets.

According to the data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- stood at Rs 87,813 crore in September compared to Rs 84,810 crore in August. In comparison, investment through this route was Rs 75,725 crore in July-end, 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 87,813 crore invested through the route till September 2022, Rs 79,418 crore was invested in equities, Rs 9,156 crore in debt, and Rs 239 crore in hybrid securities. In comparison, Rs 75,389 crore was invested in equities and Rs 9,330 crore in debt during July this year.

Investment via P-notes normally moves in trend with FPI investment. When there is a global risk to the environment, investment through P-notes increases and vice- versa. P-notes are issued by registered FPIs to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.