GK
BANKING AWARENESS AND SEBI
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
private notes
|
|
|
purchase notes
|
|
|
permanent notes
|
|
|
participatory notes
|
Detailed explanation-1: -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).
Detailed explanation-2: -Participatory Notes are financial instruments that are issued by a registered institutional investor to an overseas investor who intends to invest in the Indian stock market without having to register himself with the financial regulator in India, i.e, the Security and Exchange Board of India (SEBI).
Detailed explanation-3: -Question: Are participatory notes banned in India? Answer: P-Notes became infamous for their use by tax evaders and hoarders of black money. However, SEBI has not banned new issuances of these instruments by FPIs, fearing a massive market fall.