The majority of hedge funds which came in through the participatory notes (p-notes) route have opted to register themselves directly as foreign portfolio investors (FPIs).According to latest Sebi data, the notional value of p-note exposure to derivatives has dipped 91 per cent to Rs 50.72 billion as of November 2017 from Rs 557.8 billion in January. In July last year, the Securities and Exchange Board of India (Sebi) had issued a circular banning p-note holders from taking naked exposure to the derivatives market.