2019 · EconomyPrevious Year Question
Q17.
Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of Indian stock market without registering themselves directly?
A. Certificate of Deposits
B. Commercial Paper
C. Promissory Note
D. 1, 2 and 3
Answer

D

Explanation

• A Participatory Note (PN or P-Note) is a derivative instrument issued in foreign jurisdictions, by a SEBI registered Foreign Institutional Investor (FII) or its sub-accounts or one of its associates, against underlying Indian securities. The underlying Indian security