New Delhi, Feb. 19 (PTI): A number of foreign investors, including HSBC and UBS, have stopped issuing the controversy-ridden P-notes as regulatory and enforcement agencies step up their clampdown on the misuse of this once-popular instrument among foreigners to invest in the Indian markets. Besides, another list has been shared of investors who have parked large amounts of money, each worth over $100 million, through these instruments. Sebi has stepped up its scrutiny of investors issuing P-notes, as also those parking their money in the Indian markets through this route, amid a stepped-up clampdown on their misuse for round-tripping illicit funds. These instruments used to be popular among foreign investors who did not want to enter the market directly and used to invest through this route provided by registered FPIs. JPMorgan saw the value of ODIs decline by 77 per cent, while the fall was 62 per cent for Societe Generale.

Source: The Telegraph February 19, 2017 20:37 UTC