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

Participatory Notes (PNs) are financial instruments used by investors or hedge funds that are not registered with SEBI to gain exposure to Indian securities; they facilitate indirect investment into Indian markets by overseas entities [1]. Because PNs are a mechanism for foreign investors to participate without direct registration, they are closely associated with Foreign Institutional Investors (FIIs) / foreign portfolio investors—entities that undertake portfolio investment into Indian securities [2]. In practice, FIIs or designated foreign intermediaries issue PNs to non‑resident investors to provide exposure to Indian equities and derivatives while maintaining anonymity and ease of access.

Sources

1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 16: Balance of Payments > b. Depository Receipt > p. 478
2. [2] https://www.adb.org/sites/default/files/institutional-document/32576/ind-2001_0.pdf