They however need to go through a proper due diligence process.
Of the total investments in July, P-note holdings in equities were at Rs 1 lakh crore and the remaining were in debt and derivatives markets.
Besides, the quantum of FPI investments via P-notes fell to 4.4 per cent in July from 5.7 per cent in the preceding month.
In July, markets regulator Sebi had notified stricter P-notes norms stipulating a fee of $1,000 that would be levied on each instrument to check any misuse for channelising black money.
Also, the regulator prohibited FPIs from issuing such notes where the underlying asset is a derivative, except those which are used for hedging purposes.
The move follows after the board of Sebi in June approved a proposal in this regard.
These measures follow a slew of other steps taken by the regulator in the recent past.
In April, Sebi had barred resident Indians, NRIs and entities owned by them from making investment through P-notes.
The decision was a part of efforts to strengthen the regulatory framework for P-notes, which have been long seen as being possibly misused for routing of black money from abroad.