Participatory Notes (P-Notes) are financial instruments issued by registered Foreign Portfolio Investors (FPIs) that allow overseas investors to gain exposure to Indian securities without registering directly with the Securities and Exchange Board of India (SEBI). Their value is linked to the underlying securities held by the issuing FPI. Although P-Notes simplify market access for foreign investors, SEBI regulates their issuance to improve transparency, monitor cross-border investments, and strengthen compliance within the Indian capital market.
