Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

[UPSC Civil Services Exam – 2019 Prelims]

(a) Certificate of Deposit

(b) Commercial Paper

(c) Promissory Note

(d) Participatory Note


Answer: (d)        

Explanation:

  • P-Notes or Participatory Notes are Overseas Derivative Instruments that have Indian stocks as their underlying assets.
  • Certificate of Deposit (CDs) is short-term instruments issued by Commercial Banks and Special Financial Institutions (SFIs), which are freely transferable from one party to another.
  • Commercial paper, or CP, is a short-term debt instrument issued by companies to raise funds generally for a time period up to one year.
  • A promissory note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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