Last month saw an all-time foreign institutional investment (FII) drop in India through participatory notes (P-Notes). As a recent report detailed in Business Standard noted, the figures dropped to less than 10 percent for “the first time since 2003.” According to director of institutional equities and chief strategist of Padmakshi Financial Services, Sailav Kaji, “many P-Note investors had built up short positions in the earlier months. These shorts would have got squared off in the rally and internally adjusted,”...





