Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?
Show answer
Answer: D. Participatory Notes (P-Notes) are offshore derivative instruments issued by registered foreign portfolio investors to overseas investors who want exposure to Indian shares without registering with SEBI.
Watch for: All four sound like financial papers, so students who don't know P-Notes guess.
Why the other options are wrong
- A. Wrong because a certificate of deposit is a money market instrument issued by banks.
- B. Wrong because commercial paper is short-term unsecured debt issued by companies.
- C. Wrong because a promissory note is a written promise to pay, not a market access tool.
Source to check: SEBI (Foreign Portfolio Investors) Regulations, 2014, Regulation 22 (offshore derivative instruments); SEBI website
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.