FM declines any moneylaundering attempt via P-NOTES. P-NOTES
notional value 1.38 lakh crore at the end of 2011.
In reply to a question asked in
Loksabha, Finance Minister P Chidambaram on Friday said the Securities and
Exchange Board of India and the enforcement directorate have not come across
any instance of Participatory Notes, through which foreign institutional
investors invest in Indian stock markets, being used for money laundering.
At the end of December 2012, the notional value of
outstanding PNs stood at Rs 1.51 lakh crore, higher than Rs 1.38 lakh crore at
the end of 2011.
Currently FIIs issuing PNs has to report details such as name, location, type and jurisdiction of the end beneficial owner of the instrument on a monthly basis to market regulator Sebi.
FIIs are also required to provide an undertaking that they have not issued the PNs to Indian residents or non-resident Indians and KYC compliance norms have been followed for beneficial owner of the PN.
Currently FIIs issuing PNs has to report details such as name, location, type and jurisdiction of the end beneficial owner of the instrument on a monthly basis to market regulator Sebi.
FIIs are also required to provide an undertaking that they have not issued the PNs to Indian residents or non-resident Indians and KYC compliance norms have been followed for beneficial owner of the PN.
A PN is a derivative instrument issued by Sebi registered
FIIs against underlying Indian securities. The investor in PN has neither
ownership of the underlying Indian securities nor any voting rights.
