Which of the following statements about P notes Participatory Notes is are incorrect 1 nbs...........

Economic Affairs Balance of Payments

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Which of the following statements about P-notes (Participatory Notes) is/ are incorrect?

1. The Participatory notes are overseas derivative investments regulated by the Reserve Bank of India.

2. 70% of the P-Notes in India come from Singapore and Mauritius.

Choose the correct alternative

1 Only

2 Only

Both 1 and 2

Neither 1 nor 2

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Explanation:

The P-Notes are regulated by the SEBI and not RBI. Around 70% and more P-Notes are issued from Mauritius and Singapore.

Participatory notes also referred to as P-Notes, or PNs, 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). P-Notes are among the group of investments considered to be Offshore Derivative Investments (ODIs). Citigroup (C) and Deutsche Bank (DB) are among the biggest issuers of these instruments.