UPSC Prelims 2007·GS1·economy·money and banking

Participatory Notes (PNs) are associated with which one of the following?

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Last updated 23 May 2026, 3:31 pm IST
  1. AConsolidated Fund of India
  2. BForeign Institutional InvestorsCorrect
  3. CUnited Nations Development Programme
  4. DKyoto Protocol

Explanation

The correct answer is B because Participatory Notes, also known as P-Notes, are financial instruments used by Foreign Institutional Investors to allow overseas investors to invest in the Indian stock market without registering directly with the market regulator, SEBI. These instruments are issued by registered Foreign Institutional Investors to foreign entities that want to invest in Indian securities but prefer to remain anonymous or avoid the direct registration process. Options A, C, and D are unrelated as they refer to government accounts, international development, and climate change agreements respectively.
economy: Participatory Notes (PNs) are associated with which one of the following?
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