UPSC Exam > UPSC Questions > Which of the following is issued by registere...
Start Learning for Free
Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?
- a)Participatory Note
- b)Commercial Paper
- c)Promissory Note
- d)Certificate of Deposit
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Which of the following is issued by registered foreign portfolio inves...
Participatory Notes are Overseas Derivative Instruments that have Indian stocks as their underlying assets. They allow foreign investors to buy stocks listed on Indian exchanges without being registered. The instrument gained popularity as FIIs, to avoid the formalities of registering and to remain anonymous, started betting on stocks through this route.
Free Test
FREE
| Start Free Test |
Community Answer
Which of the following is issued by registered foreign portfolio inves...
Participatory Note:
Participatory Note is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly. Here is a detailed explanation of Participatory Notes:
Definition:
- Participatory Notes, also known as P-Notes, are financial instruments used by investors to invest in Indian securities without undergoing the hassle of direct registration with the market regulator, Securities and Exchange Board of India (SEBI).
Issuance:
- Registered Foreign Portfolio Investors (FPIs) issue these notes to overseas investors who want exposure to the Indian stock market.
- These notes are like promissory notes and give the holder the right to receive the returns from the underlying securities.
Regulations:
- SEBI closely monitors the issuance and trading of Participatory Notes to ensure transparency and prevent money laundering and tax evasion.
- FPIs issuing these notes need to comply with SEBI regulations and report the details of the underlying assets to SEBI periodically.
Benefits:
- Participatory Notes provide a convenient way for foreign investors to invest in the Indian market without facing regulatory hurdles.
- It allows foreign investors to access the Indian market's potential returns without direct registration.
In conclusion, Participatory Notes are an important tool for foreign investors looking to participate in the Indian stock market indirectly. They offer convenience and flexibility while ensuring regulatory compliance and transparency.
Participatory Note is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly. Here is a detailed explanation of Participatory Notes:
Definition:
- Participatory Notes, also known as P-Notes, are financial instruments used by investors to invest in Indian securities without undergoing the hassle of direct registration with the market regulator, Securities and Exchange Board of India (SEBI).
Issuance:
- Registered Foreign Portfolio Investors (FPIs) issue these notes to overseas investors who want exposure to the Indian stock market.
- These notes are like promissory notes and give the holder the right to receive the returns from the underlying securities.
Regulations:
- SEBI closely monitors the issuance and trading of Participatory Notes to ensure transparency and prevent money laundering and tax evasion.
- FPIs issuing these notes need to comply with SEBI regulations and report the details of the underlying assets to SEBI periodically.
Benefits:
- Participatory Notes provide a convenient way for foreign investors to invest in the Indian market without facing regulatory hurdles.
- It allows foreign investors to access the Indian market's potential returns without direct registration.
In conclusion, Participatory Notes are an important tool for foreign investors looking to participate in the Indian stock market indirectly. They offer convenience and flexibility while ensuring regulatory compliance and transparency.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer?
Question Description
Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer?.
Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which of the following is issued by registered foreign portfolio investors to overseasinvestors who want to be part of the Indian stock market without registering themselvesdirectly?a)Participatory Noteb)Commercial Paperc)Promissory Noted)Certificate of DepositCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup