PARTICIPATORY NOTES

PARTICIPATORY NOTES :
- These are derivative instruments issued by registered Foreign Institutional Investors (FII) to their clients, who are not directly allowed to buy or sell in Indian markets.
- Participatory notes are like contract notes and are issued by foreign institutional investors to their overses clients who may not be eligible to invest in Indian stock market.
- Foreign institutional investors invest funds on behald of such investors, who prefer to avoid making disclosures required by various regulators.
- These clients could be high net worth non-resident individual or Overseas corporate Bodies or other unregistered units (in India). FIIs use their client's money to buy or sell stocks in Indian market.
- Returns of clients depend on the gains/loss made by these registered FIIs from Indian markets.