The comments assume significance as a Supreme Court appointed Special Investigation Team (SIT) on black money has asked capital market regulator Sebi to review its regulations on participatory notes and identify their end-users.

"It's nobody's intention to ban P-Notes overnight. The SIT report highlights that there is a need for further improvement in P-Notes regulations," Das said here.
    
SIT raised its concerns about possible manipulation of the popular offshore instrument for the purpose of money laundering.
    
"We are in the process of consultations with the Reserve Bank of India (RBI) and Sebi on the SIT recommendations on P-Notes," the Secretary said, adding that the government will also speak to FIIs before firming up its view.
    
Additionally, the government will examine how to improve the Know Your Client (KYC) requirement for P-Notes, the Revenue Secretary said.
    
Last month, Finance Minister Arun Jaitley had said the government is mindful of the impact on foreign investment in case of any action against P-Notes.

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