Sensex Slumps 500 Points Amid P-Note Jitters. Don’t Panic, Says Jaitley

Finance Minister Arun Jaitley has sought to calm investors after the Sensex fell more than 500 points on Monday, amid jitters over a recommendation for stiff norms for participatory notes or P-Notes and a steep 8 per cent plunge in China markets.

Mr Jaitley promised that “the government will not take any steps that will adversely impact the country’s investment climate.”

He ruled out a “knee-jerk reaction” to a special investigation team’s (SIT) recommendation last week for tighter regulations on P-Notes to curb the flow of black money. P-Notes are instruments through which foreign individuals, hedge funds and others invest in India’s stock markets without being registered with market regulator Securities and Exchange Board of India