India ranks the ninth largest IPO market in the world, capturing 3 % of the global market share, according to the Thomson Financial data.

Among Brazil, Russia, India and China (BRIC ecnomies), only Brazil and India increased their IPO proceeds two-fold, recording a rise of 292.4 per cent and 166.2 per cent respectively.

India has established the largest IPO and the largest follow-on offer on record, all issued this year, according to the Thomson Financial data.

This weeks hot news is that the sensex, had hit 20,000 points for the first time , making India: 20th nation in the world to touch 20,000-mark. But what dirves this success.. without doubt FII money.

Indian stock investor makes up just a fraction of investment activity on the Indian stock market, but really Foreign Institutional Investors are the one who have really leading the Indian stock market success.

According to Bloomberg, Foreign investors have bought some $16.7 billion in Indian shares this year.

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India on Monday became the 20th nation in the world to have seen its stock market benchmark touch the 20,000-point milestone.

The bellwether index Sensex breached the 20k level in intra-day trade for the first time in its over two-decades history. As many as 32 indices spanning across 19 countries have already crossed this mark.

After crossing the magical figure in late afternoon trade, the Sensex, however, fell to close at 19,977.67.

We have seen the recent Indian stock market crash in the wake of the proposed restrictions on investments by overseas investors through Participatory Notes by SEBI.

So what does this Participatory notes mean ?

Participatory notes (PNs) are Financial instruments used by investors or hedge funds that are not registered with the Securities and Exchange Board of India to invest in Indian securities.

For example, Indian-based brokerages buy India-based securities and then issue participatory notes to foreign investors. Any dividends or capital gains collected from the underlying securities go back to the investor. According to one estimate, participatory notes constitute more than 25% of the cumulative net investments in equities by FIIs.

Indian Government, SEBI concern

• Indian regulators are not very happy about participatory notes because they have no way to know who owns the underlying securities.
• Recently the National Security Advisor (NSA), Mr M. K. Narayanan issued a statement, that terrorists could be manipulating the stock market in India.

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