New Delhi: Investments through participatory notes (P-notes) in the Indian capital market stood at Rs 79,088 crore in August-end, registering the third consecutive month-on-month decline. Investments through P-notes has been declining since June, while the month of May had registered an increase over the previous month. P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly after going through a due diligence process. Also Read – Thermal coal import may surpass 200 MT this fiscalAccording to the latest data from the Securities and Exchange Board of India (Sebi), the cumulative value of P-note investments in the domestic markets — equity, debt, and derivatives — fell to Rs 79,088 crore till August-end from Rs 81,082 crore in July-end. In June-end, the investment was at Rs 81,913 crore, while it was at Rs 82,619 crore in the end of May and Rs 81,220 crore in April-end. Out of the total investments made till the end of August, Rs 52,150 crore was invested in the equities segment, Rs 26,259 crore in debt and Rs 678 crore in the derivatives market. Also Read – Food grain output seen at 140.57 mt in current fiscal on monsoon boostThe use of P-notes has been on a decline since 2017 and slumped to a nine-and-a-half year low of Rs 66,587 crore in October-end. Marketmen attributed the decline to gradual measures taken by regulatory bodies to curb the usage of P-notes. Besides, a large number of people have been seen shifting from P-notes to FPIs in the last few months as the process has been made easier. In July 2017, Sebi had notified stricter norms stipulating a fee of $1,000 on each instrument to check any misuse for channelising black money. It had also prohibited FPIs from issuing such notes where the underlying asset is a derivative, except those that are used for hedging purposes. Marketmen believe that Sebi’s recent decision to rationalise the rules for issuance and subscription of contentious offshore derivative instruments such as P-notes may help in attracting investment through the route. Last month, the board of Sebi has approved a proposal to rationalise the framework for issuance of P-notes — an instrument once very popular with foreign investors.