Thursday, October 25, 2007

PNs have been exploding in India

All you wanted to know about PNs

A search for PN on yields 37 results, beginning with ‘pain’ (physiology). The rest include part number, Pitcairn Island, planetary nebulae, pseudo noise, peripheral neuropathy, practical nurse, proton neutron, portable network, primitive notion, and project nothing.
“Participatory note or PN was a fairly unknown term to most people, including those who invested in the stock market,” observes Mr Sunil Rongala , a PhD in economics, in a discussion with Business Line on the currently hot topic.
It has been about a week since the market regulator SEBI (Securities and Exchange Board of India) decided to crack down on PNs. And suddenly we realised the power that PNs have over the Indian stock market. “They (the holders of PNs) decided to go in for a mass sell-off after SEBI decided to impose sanctions on them,” recounts Mr Rongala.
Excerpts from an e-mail interview, in which he dwells upon what it is about PNs that has inspired so much fear and loathing.



I guess PNotes should have been regulated before they could grow to this size...atlest SEBI has realised about the pros and cons about PNotes at least now and have regulated. My view is if anybody is interested in India's growth story,irrespective of the form of investor, they can get themselves registered and invest. What is the harm in getting regd. and SEBI should liberalise the procedure of regn. and I feel should come out with fast track regn. procedure.


India's growth story is well know. Serious investors can get registered under SEBI and get the fruits of high returns of India economy. PNotes should not be banned but should be regulated.