Participatory notes also referred to as P-Notes Or PN. The P Notes are financial instruments required by investors or hedge funds to invest in Indian securities without having to register with the Securities and Exchange Board of India (SEBI).
Participatory Notes are a kind of offshore derivative instrument. They are used by foreign investors to invest in Indian securities in an indirect way.
Participatory notes are instruments used for making investments in the stock markets. Participatory notes allow non-registered investors to invest in the Indian market. The value of P Notes is determined on the basis of the underlying assets so purchased by the overseas investor.