MARKET EYE-Investments into Indian P-notes surge in October

* The total value of participatory notes into Indian equity and
debt, including derivatives, rose to 176 trillion rupees ($3.21
trillion) in October, its highest since February, according to
Securities and Exchange Board of India (SEBI) data. (link.reuters.com/bag74t)
* The rise in investments via P-notes marks a significant
recovery from the fiscal 2012-13 year-low in May when the value
fell to 1.29 trillion amid worries the government was looking to
tax foreign investors under the General Anti Avoidance Rule
(GAAR).
* Participatory notes are offshore instruments issued by foreign
institutional investors to overseas investors who want to invest
in India without having to directly register with Indian capital
markets regulator SEBI.
* However, the deferral of the implementation of GAAR,
valuations in equities and the government's fiscal and economic
reforms have revived investments into P-notes.
($1 = 54.7900 rupees)

(abhishek.vishnoi@thomsonreuters.com /;
abhishek.vishnoi.reuters.com@reuters.net)