Lot of discussion is going on these days on the issue of

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Lot of discussion is going on these days on the issue of 'Participatory Notes' (P Notes) used in financial sector/money market. What is a Participatory Note?

1. It is an offshore derivative instrument used by overseas buyers/investors who shares of Indian companies listed in Indian Stock Exchange amonymously
2. It is nothing but another name of the banking operation by which banks exchange Indian Rupees into US Dollars without depositing a single rupee in the account of the part who are NRIs. The entire Operation is carried out by the banks solely on the basis o
3. It is nothing but a type of undertaking given to the banks that they should continue investing money in stock markets on behalf of NRIs and in case the market crashes NRIs will make the losses good without delay
4. All the above

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