P-note investors return to Mauritius as FPIs Even as participatory notes (P-notes) become unattractive for taking positions, many investors are now looking to enter India using the foreign portfolio investment (FPI) route either through Mauritius or directly. P-notes are overseas derivative instruments with Indian stocks as their underlying assets. Industry trackers say some P-note holders are looking to directly invest in India without setting up an investment arm in a buffer country .However, some of the other investors could route their investments through Mauritius. The persons cited earlier said the newly registered FPIs will fall under category-III definition of the government and could start attracting higher taxes, going ahead. Many P-note holders invest in In dian futures and options (F&O) on which they did not pay any tax until recently. Also the instrument provided anonymity to these investors. However, the market regulator recently took two steps that force