Thursday, October 15, 2015

Participatory notes are regulated under the law: Delhi High Court

Delhi High Court said that Participatory Notes (P-Notes) are not illegal and were regulated under
the law. What are Participatory Notes? Participatory Notes are pass through certificates to pass the earnings and growth of underlying securities to the beneficial owners of the PTCs. P-Notes are part of Offshore Derivative Instruments (ODI) which are issued by or on behalf of Foreign Portfolio nvestors (FPI) and are “generated, operated and destroyed” outside India. P-Notes were regulated instruments and placed before the court. Offshore Derivative Instruments (ODIs) include P-Notes and such other instruments which are entered into by FPIs in stock exchanges in India.


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