Note-Bandi: Demonetisation and India’s Elusive Chase for Black Money by Unknown

Author:Unknown
Language: eng
Format: epub
Publisher: OUP India
Published: 2018-02-16T00:00:00+00:00

TABLE 9.1 Assets Under Custody (AUC) of FIIs Country-wise (Top 10 Countries) (Rs crore)

Source: SEBI; FII–foreign institutional investor; SA–sub account.

Figure 9.1 P-Note Investments as Percentage of Assets under FII Management

Broad Trends of P-Note Flows

Summary statistics of the net FII and P-Note inflows are shown in Table 9.2.

Net FII inflows peaked at Rs 139,931 crore in May 2014, while P-Note inflows peaked at Rs 75,217 crore in June 2007. The P-Note-related inflows into Indian equity markets had two distinct and contrasting phases—August 2006 to October 2007 (investments were net positive), and November 2007 to February 2009 (investments were net negative).

The P-Note inflows were positive and substantial from August 2006 to October 2007. Monthly inflows averaged around Rs 22,053 crore. In fact during this 14-month-period, non-P-Note-related inflows averaged only Rs 13,629.53 crore. Further, P-Note inflows were continuously positive except for December 2006 and July 2007. That is when SEBI and policymakers in India became anxious and came up with the discussion chapter requiring the disclosures on the original beneficiaries of P-Notes. Following this, P-Note inflows turned net negative continuously with monthly outflows averaging around Rs 24,292 crore from November 2007 to February 2009, while, during the same period, non-P-Note-related FII outflows averaged Rs 11,155.5 crore. Incidentally, this period coincides with the global financial crisis, and the reasons for the outflow could not be attributed only to the SEBI’s discussion chapter on disclosure requirements.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.