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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) rose over a six-year high at Rs 1.33 lakh crore at September-end, making it the seventh consecutive monthly increase, on the back of robust macroeconomic fundamentals. This is the highest level since July 2017 - when investment through the route stood at Rs 1.35 lakh crore.

The latest data includes the value of p-note investments in Indian equity, debt, and hybrid securities. According to data, the value of p-note investments in Indian markets - equity, debt, and hybrid securities - stood at Rs 1,33,284 crore at the end of September 2023 as compared to Rs 1,28,249 crore a month earlier. In comparison, investment through the route was Rs 1.23 lakh crore in July, Rs 1.13 lakh crore in June, Rs 1.04 lakh crore at May-end, Rs 95,911 crore at April-end, Rs 88,600 crore at March-end, Rs 88,398 crore at February-end and Rs 91,469 crore at January-end. 

The growth in p-notes generally aligns with the trend in FPI flows. When there is a global risk to the environment, investment through this route increases, and vice-versa. P-notes are issued by registered Foreign Portfolio Investors (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.