P-Notes, Mauritius treaty won’t impact FPIs, says Jayant Sinha

MUMBAI: Investors need to merely tweak their hedging strategy and not get too concerned over the change in participatory note ( P-Note) rules by Securities and Exchange Board of India ( Sebi), Jayant Sinha, minister of state for finance, told a clutch of leading foreign portfolio investors ( FPIs)on Thursday.

Sinha along with Revenue Secretary Hasmukh Adhia were part of a conference call organised by Goldman Sachs for FPIs and their advisors.

"He (Sinha) stressed that the contracts signed by investors for P Notes are very flexible and the new Sebi regulations (on P-notes) would not impact that," said a person who attended the call. "He was of the view that the P Note announcement doesn’t change anything for the FPIs ," he said.

The call was mainly conducted to discuss the new Mauritius taxation treaty, which was amended earlier this month.