DD Support Board and Research Team

[OMOLIVES]

Foreign to India. The notes are issued by them and the receiver(investor) remains anonymous. No one ever knows the initial investor or ending investor because they are anonymous and the notes are also transferable. The FII(foreign institutional investor) then uses such at the direction of the investor/note holder. That includes stocks, bonds,derivatives... futures, and options traded in the Indian stock markets...etc...etc

They initially started using these in the early 90's, but all had to be registered and they were very transparent. Then circa 2000 SEBI softened it up. These type of notes make up roughly 20% plus of the Indian market and have been banned in the past and have had many rule changes.

Disclosure(via FII) started being every Month(I believe), then was shortened to biweekly..and now is immediately after the position is taken. The Hindenburg short et al caused the rule change once again. It seems as every market crises in India is a result of these type of derivatives....lol. The punchline is that SEBI and the Financial Authority of India created this....and it has been one of the biggest pain in the ass for them since inception(actually since circa 2000). It does benefit India but it also destroys India. Now they are stuck because when they are banned ....the market crashes. These type of vehicles are known for money laundering, tax evasion.....and the honey spot for the wealthy, crooked politicians and crooks. The intention is good but bad players make up the majority...or at the lest are in the mix. It has been a political and financial issue ever since inception

Probably the most famous instance of a P-Note is...:

Hasan Ali laundered money for 3 former Maharashtra CMs -8 Billion Dollar money laundering scandal via Hasan Ali Khan

https://www.indiatoday.in/india/north/story/hasan-ali-laundered-cash-for-3-maharashtra-cms-130755-2011-03-21

According to probe agencies, Ali took unaccounted black money from Indian politicians out of the country through the hawala channel and parked them in bank accounts in various countries across the globe, especially Mauritius.

He would then bring this money back to India, invest it in the stock market through participatory notes to buy up shares for people named by the politicians. At times, the money would come in as foreign investment straight into companies floated by friends and family of these politicians.

"In those years, especially the late 1990s and early 2000s, the stock markets had huge black money riding on it, which was often untraceable. Ali smartly bought participatory notes which were not required to be registered with SEBI. In the same fashion, some of the money would also come into companies that would have a beneficiary of the politician's family or in some cases, a completely new business entity in the name of a beneficiary of the politician," said a source close to the probe agencies. Through this strategy, Ali is believed to have pumped in money into the businesses of the son-in-law of one of these former CMs.

He died last year.

Hindenburg probably shelled out $25k for a tip sheet(crib notes) and then went from there. The irony is that Hindenburg used the same/similar offshore tax havens that they claimed Adani used. But, not for the same reasons claimed against Adani.