Participatory Notes
Financial instruments used by investors or hedge funds that are not registered with the Securities and Exchange Board of India to invest in Indian securities. Indian-based brokerages buy India-based securities and then issue participatory notes to foreign investors. Any dividends or capital gains collected from the underlying securities go back to the investors.

Also referred to as "P-Notes"

Investopedia Says:
In many ways, this is similar to an informal ADR process, where brokerages hold on to stocks for foreign investors. However, Indian regulators are not very happy about participatory notes because they have no way to know who owns the underlying securities. Regulators fear that hedge funds acting through participatory notes will cause economic volatility in India's exchanges.

Related Terms:
American Depositary Receipt - ADR
Broker
Capital Gain
Dalal Street
Dividend
Hedge Fund
Securities And Exchange Board Of India - SEBI
Volatility

• Short Interest
• Short Interest Ratio
• Short Interest Theory
• Short Market Value
• Short (or Short Position)
• Short Refinance
• Short Run
• Short Sale
• Short Sell Against the Box
• Short Selling
• Short Squeeze
• Short Straddle
• Short-Swing Profit Rule
• Short Tender
• Short Term
• Short-Term Debt
• Short-Term Investment Fund (STIF)
• Short-Term Investment Fund (STIF)
• Short-Term Investments
• Short The Basis
• Shotgun Clause
• Shout Option
• SHP
• Shrinkage
• Shutdown Point