The P-note issue gets noticed by the SEBI and the Finance ministry only after the market was exposed to the hedge fund operators for many crores of rupees in the indian bourse. Why was not this issues foreseen before and what did the sebi foresaw when they welcomed p-note participation intially. padmanabhan.n padmanabhan76@yahoo.com
The article is well written.However, one important point.SEBI does not propose a ban on P Notes but only limit the issuances to 40% of assets under management of an FII where PNs are invested in cash market. The PNs will have to be bought to nil in a period of 18 months where they are invested in the Derivatives Market, ie in futures and options.
I am unable to understand why the trio did not propose to tighten the rules for purchase of shares and bonds in Indian companies through the participatory note route when the Sensex was at 12-14000 level? Whenever there was substantial rise in the sensex beyond 14 k our FM termed it as normal and did not mention involvement of P Notes.
RE:P NOTES
by DYS DYS on Oct 21, 2007 10:36 PM Permalink
Exactly. These animals must be driven out across the Himalayas to their sacred land. I sometimes feel surprised how China could manage to get slaves like them. Even by paying enough or good treatment also, we can't manage get the best output ever - but look at these commies, they are just dedicated for their country. Aren't they kinda psychos?
I was little bit aware of these notes but they have made such a big havoc is beyond imagination. Now SEBI should take some desirable steps in the interest of small investors.
the entire arrangement in this article is very systematic and written in a very simple language. Articles like this one should be more and more encouraged for collective good.
