Correct answer: (d) Participatory Note
Explanation
- A
Certificate of Deposits
(a) Certificate of Deposit is a short-term bank deposit instrument in the money market, not a note issued by FPIs to overseas investors. Not the key.
- B
Commercial Paper
(b) Commercial Paper is an unsecured short-term corporate IOU in the Indian money market. It is not the overseas-access product in the question, so it is not the key.
- C
Promissory Note
(c) Promissory note is a generic negotiable instrument. It is not the registered-FPI product named here, so it is not the key.
- D
Participatory Note
(d) Participatory Note (P-note) is issued by registered foreign portfolio investors to overseas investors who want Indian-market exposure without registering with SEBI themselves. That is the official key.
Summary. Official key is (d). Participatory notes are offshore derivative instruments issued by SEBI-registered FPIs. CDs, commercial paper and ordinary promissory notes are domestic money-market or negotiable instruments. Honour (d).
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