Market regulator SEBI has made it mandatory for Participatory note (P note) users to follow Indian anti-money laundering law and report any suspicious transactions immediately. Acting upon recommendations of the Supreme Court- appointed SIT on black money, Sebi also tightened the due-diligence requirements for issuance and transfer of these instruments and put the onus on the original issuer for compliance to Anti-Money Laundering Regulations.The issuers would have to conduct periodic review and report the complete transfer trail of P-Notes to Sebi on a monthly basis in addition to the present requirement of reporting details of their holders. P-Notes are typically instruments issued by registered foreign institutional investors to overseas investors, who wish to invest in Indian markets without registering themselves directly in India to save on time. But, they still need to go through a proper due diligence process.