01698cas a2200241 a 4500 AALejournalIMF009723 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451868548 1018-5941 BD-DhAAL BD-DhAAL Singh, Manmohan. Use of Participatory Notes in Indian Equity Markets and Recent Regulatory Changes / Manmohan Singh. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (13 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper focuses on the use of participatory notes (PNs) by foreign investors, as a conduit for portfolio flows into Indian equity markets for more than a decade. The broadening of India's foreign investor base, in recent years, has a bias towards hedge funds/unregistered foreign investors who invest primarily via PNs. While tax arbitrage via capital gains tax has almost disappeared since July 2004, it is intriguing to note that since then the demand for PNs has actually increased. The paper suggests some reasons for the continuation of a buoyant market in PNs, and explains the possible impact from the recent regulatory changes. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2007/291 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/291/001.2007.issue-291-en.xml IMF e-Library