RE:P Notes
by Mohamed AtherAli on Dec 08, 2007 10:37 AM Permalink
YES , BUT A FORGEIN INVESTOR( ANY TYPE).YES ONLY THROUGH FII. BECUASE PNS ARE IN SUB ACCOUNTS OF REGISTERED FIIS, WHO IN TURN OPERAT THROUGH INDIAN BROKARAGES.
PNotes and other derivatives are the Sub-prime Mortgage Securities that nobody in US or Europe wants. They are desperately trying to value the tied up instruments that they cannot mark to market. FII's packages this and sell to un-suspecting Indian and Chinese markets re-directing it to Stock markets buying up Emerging market stocks. This is so dangerous that it will eventually destroy Indian Markets. chinese Markets might comeout of this as they have more than a trillion dollars in their kitty. SEBI and Govt has smelled the biggest threat to Indian markets and decided to call the bluff. FII's must be controlled just like US and Euproeans do with Chinese and Indian Companies trying to operate in WEstern markets.
The article gives a list of entities who can invest in P-notes. It is also said terrorists, mafia dons, underworld, and corrupt politicians are the ones who are driving the market up now. Can these people own the entities listed in the article? If a FII can invest upto 40% in P-notes. Can this FII have 100 percent of the funds of a gangster, say for eg. Dawood, or a terrorist entity like al-qaeda?
