Investments in domestic equity, debt and derivatives markets through participatory notes, P-Notes, surged to the highest level in three months, at 1.73 lakh crore rupees in February. According to the latest data released by the Securities and Exchange Board of India, SEBI, the quantum of foreign instutional investments via P-Notes grew 11.7 per cent in February, from 11.5 per cent in January. P-Notes are a financial instrument used by overseas High Networth Individuals, hedge funds and other foreign institutions, to invest in the domestic markets. The increase of investments though P-Notes assumes significance in the context of the forthcoming elections.Till a few years ago, P-Notes used to account for more than 50 per cent of the total FII investments. But their share fell after SEBI tightened disclosure norms and other regulations for such investments.