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Question

General Knowledge Question on Business and Economy

Which among the following is/are correct about participatory notes or P-Notes?

A

They are derivative instruments

B

They are used by Foreign Institutional Investors (FIIs) who are not registered with SEBI.

C

They are used on Indian shares but at a location outside India

D

All of the above

Answer

All of the above

Explanation

Solution

Participatory notes (P-notes) are derivative instruments used by Foreign Institutional Investors (FIIs) who are not registered with SEBI.These instruments are used to invest in Indian shares but at a location outside India. Therefore, all of the options mentioned are correct statements about P-notes..So the correct option is (b) :