It is an indirect way to control markets through FIIs... also Jayalalitha has rightly pointed out that this route can be subterfuged by Indian nationals to evade law... even osama bin laden could hold PNs through a network of sub agents!!!
The FM has made a mistake by not enacting a provision to bar sale of PNs to Indian residents... asking them in the reporting format the question seems to point a lacuna between planning and administration...
Wonder what the FM is trying to prove here?
The process of disclosure of the PN issues would be very complex and FIIs might be unwilling to do the same to protect vested interests (of its investors)...
Unless proper disclosure procedures and a proper control mechanism is not set in motion, PNs should be temporarily barred...
This is a classic example of how financial routes can be misutilised, while it may appear in control superficially...
