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?

Gives a direct-styled exam item that links 'registered foreign portfolio investors' with issuing something to overseas investors who want exposure without registering — the correct option listed is 'Participatory Note'.

A student could treat this as an authoritative classroom formulation and check regulatory descriptions of Participatory Notes and FPI activities to confirm operational details.

States that foreign institutional/portfolio investors must be registered with SEBI to buy/sell on Indian exchanges.

Combine this rule with the idea that intermediaries (registered FPIs) can act on behalf of non-registered overseas investors to infer why P-Notes might be issued by registered FPIs.

Defines Foreign Portfolio Investors (FPIs) as institutions incorporated outside India and registered with SEBI.

Use this definition to reason that FPIs are the regulated entities through which foreign participation occurs, so instruments issued by FPIs (like P-Notes) plausibly provide that access.

Explains ADR/GDR as intermediary depository instruments that allow overseas investors to gain exposure without direct listing — an analogous pattern of using intermediaries to access foreign securities.

Use the ADR/GDR analogy plus knowledge of international investment practice to see P-Notes as a similar intermediary device for foreign investors to access Indian stocks.

This MCQ explicitly asks which instrument is issued by registered foreign portfolio investors to overseas investors who want exposure without registering themselves, listing 'Certificate of Deposit' and 'Participatory Note' as options.

A student could use this to focus research on which of the listed instruments (CD vs participatory note) is commonly used for non‑resident exposures and then check authoritative SEBI guidance or definitions.

Explains the general mechanism where an overseas depository (ADRs/GDRs) issues a security representing underlying domestic shares to foreign investors — an example of intermediated exposure.

Compare this known intermediated model (ADRs/GDRs) with the idea of FPIs issuing other intermediated instruments (like CDs or P‑notes) to assess plausibility.

Defines Foreign Portfolio Investors as institutions incorporated outside India and notes that FPIs are registered with SEBI.

Use this to check whether registered FPIs have the authority or precedent to issue instruments to overseas investors on behalf of Indian market exposure.

States that Foreign Portfolio Investment generally happens through the secondary market, implying intermediated trading and instruments are part of FPI activity.

A student could infer that if FPIs operate in secondary markets, they might use intermediating instruments (investigate which specific instruments are used for offshore client exposure).

Notes foreign institutional investors must register with SEBI to buy/sell on Indian exchanges, highlighting regulatory control over foreign access to Indian markets.

Combine this with the MCQ (snippet 1) to investigate whether regulation permits registered FPIs to create pass‑through instruments for unregistered overseas investors.

The exercise question explicitly asks which instrument is issued by registered foreign portfolio investors to overseas investors who want exposure without registering themselves — implying such an arrangement exists and is associated with a specific instrument.

A student could check which option (e.g., Participatory Note vs Commercial Paper) is standardly cited in textbooks or SEBI guidance as the instrument used to give unregistered overseas investors market exposure.

States that foreign institutional investors must register with SEBI and that they operate through portfolio investment schemes, establishing that intermediaries (registered FIIs/FPIs) are the regulated entities in cross-border portfolio flows.

Use this rule to reason that any device allowing unregistered overseas investors exposure would likely be provided via a registered intermediary (FPI/FII) and then verify which instruments SEBI permits intermediaries to issue.

Notes FIIs are regulated by SEBI and are active in financial markets, supporting the idea that registered foreign entities are the channel for foreign investment into Indian securities.

Combine with item 1 to investigate SEBI rules on what registered FIIs/FPIs are allowed to issue to overseas clients (e.g., PNs) versus whether they can issue Commercial Paper for this purpose.

Describes ADR/GDRs as instruments created by an overseas depository to let foreign investors hold shares of Indian companies without direct listing — an example where intermediaries create instruments to provide indirect exposure.

Use this analogy to consider whether Commercial Paper could serve a similar intermediary role, and then look up whether CPs are structured or regulated to provide equity-market exposure to overseas investors.

Defines FPIs and notes they can invest in government and corporate bonds and be treated as debt, highlighting that foreign portfolio investors engage in both equity and debt instruments under regulatory distinctions.

A student could use this to distinguish debt instruments (like Commercial Paper) from equity-exposure instruments (like Participatory Notes) and then check whether CPs are used to give equity-market exposure.

The textbook question explicitly lists 'Promissory Note' and 'Participatory Note' as options for instruments issued to overseas investors who don't register directly, indicating these instruments are considered in this context.

A student could recall that one of these options is likely correct and then check external sources (SEBI guidance) or class notes to see which instrument is actually used (e.g., participatory notes vs promissory notes).

States that foreign institutional investors must register with SEBI to buy/sell on Indian exchanges, implying there exist alternative routes/instruments for non-registered overseas investors to gain exposure.

Combine this with knowledge that intermediated products exist to bypass direct registration to infer such instruments (like P‑notes) serve that role and then check whether promissory notes are among them.

Describes ADR/GDR as an instrument where overseas depository banks issue securities representing domestic shares so investors need not list directly—shows precedent of intermediary instruments providing indirect exposure.

Use the ADR/GDR analogy to reason that India may have other intermediary instruments (e.g., P‑notes) rather than promissory notes, and then verify which instrument is used for portfolio/secondary market exposure.

Defines Foreign Portfolio Investors (FPIs) as registered entities with SEBI, highlighting that the regulatory regime distinguishes registered FPIs from other non‑registered overseas investors.

A student could infer that mechanisms exist to let non‑registered investors access markets through registered FPIs (so check whether registered FPIs legally issue promissory notes or another instrument).

Notes IFSC units and India-INX allow foreign listing/transactions treating IFSC as foreign territory—another example of structural alternatives to direct onshore registration.

Combine this with map/knowledge of financial centres to explore whether such off‑shore/IFSC routes are used instead of simple promissory notes for overseas exposure, guiding targeted verification.