The Securities and Exchange Board of India (Sebi) proposes to levy a $1,000 fee on foreign portfolio investors (FPIs) for each participatory note (P-Note) issuance in an effort to cut down on speculative investments.
In a consultation paper released on Monday, the markets regulator also proposed banning P-Notes that are based on derivatives used purely for speculative purposes.
P-Notes, or offshore derivative instruments (ODIs), are issued by registered FPIs to overseas investors who wish to invest in Indian stock markets without registering themselves with Sebi.
