Move to curb P-Notes for transparency: Damodaran

By IANS

New Delhi : The recent move to curb participatory notes was taken to bring in more transparency in the stock market, Securities and Exchange Board of India (SEBI) chairperson M. Damodaran said Wednesday.


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“What we are attempting to do is to give India and the world something that people understand better, bring in more transparency and provide better products to people,” Damodaran said at the Fortune Global Forum organised for the first time in India.

“Things we are attempting and some of the steps we have taken might seem to be inconsistent with our long-term direction, but it’s not always that every short-term measure seems to be in the same direction as your long-term roadmap. On occasion you tend to move back a bit.”

“It’s something like football – you see a lot of passing the ball back to the goalkeeper who is the last man in your team; disjunctively in isolation that can be seen as a very negative move but you might be doing that in order to see that your journey forward becomes a little easier and that is exactly what we are trying to do,” the SEBI chief said.

Participatory notes or P-Notes are financial instruments that are provided to foreign investors who are not registered with SEBI to invest in Indian securities.

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