Goldman Sachs Defies Market Trend with Thriving P-Note Business in India

While the broader market for India’s participatory notes (P-notes) continues to shrink, global investment giant Goldman Sachs is taking a different path—ramping up its P-note activity in the country.

In a market where most are scaling back, Goldman Sachs has executed at least 15 separate share purchases for its P-note clients so far in 2025.

These investments include high-profile names like Paytm, Bharti Airtel, and Eternal, indicating continued confidence in India’s long-term growth story by select global investors.

Check This:

• Paytm Stock Price
• Bharti Airtel Stock Price
• Eternal Stock Price

Attracting Global Wealth Despite Market Contraction

According to sources familiar with the matter, Goldman Sachs is actively onboarding family offices, boutique funds, and ultra-wealthy individuals who are interested in India but are not ready to formally register with SEBI just yet.

These investors prefer the flexibility and anonymity that P-notes offer, making Goldman’s service especially attractive amid rising regulatory complexity.

While others are scaling down, Goldman is tapping into a niche demand for exposure to Indian equities, even as formal foreign portfolio investment (FPI) routes remain underused by smaller institutions and individuals.

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A Shrinking Industry, Except for One

The participatory note market has been on a steady decline. As of April 2025, P-notes account for just 1.63% of total FPI assets, down from 2.2% in April 2024. This is a stark contrast to five years ago when P-notes represented nearly half of all FPI investments in India.

Goldman Sachs is currently one of the few major players still actively leveraging P-notes, against a backdrop of declining interest industry-wide.

What Are P-Notes?

Participatory notes (P-notes) are instruments issued by registered FPIs that allow foreign investors to invest in Indian markets without direct registration with SEBI. Though their usage has fallen due to tighter norms and increased transparency requirements, they remain popular among certain high-net-worth investors seeking speed and privacy.

Goldman Sachs’ continued use of P-notes highlights a strategic play for fast and flexible market access, especially for those not ready to commit to full FPI registration.