Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of Indian stock market without registering themselves directly?

Which of the following is issued by registered foreign portfolio…

Answer

(a) Certificate of Deposits: These are short-term negotiable money market instruments issued by banks/FIs to raise funds, not for indirect investment in Indian equities by foreign investors. Verdict: Incorrect.
(b) Commercial Paper: This is an unsecured short-term promissory instrument issued by companies to meet working capital needs. It is not the route for overseas investors to access Indian stock markets without registration. Verdict: Incorrect.
(c) Promissory Note: This is a general financial instrument containing a written promise to pay; it is not the specific instrument used by FPIs for such stock market exposure. Verdict: Incorrect.
(d) Participatory Note: Registered Foreign Portfolio Investors issue Participatory Notes (P-Notes) to overseas investors who want exposure to Indian securities without registering directly with SEBI. Verdict: Correct.