MR Venkatesh is a financial expert who predicted US financial turmoil many years ago.
Mr. M.R. Venkatesh is the author of the book: Sense, Sensex And Sentiments:the Failure Of Indian Financial Sentinel, K.W. Publishers (2011).
He tells all about on the Participatory notes. Here is how the mechanism to facilitate corrupt practices happens in simple steps.
1) Politician is offered bribe for his illegal services.
2) Politician will not take money to his hand. She will ask her client to work through hawala operator (like Hassan Ali Khan) to deposit funds in safe havens in West.
3) Politician approaches financial companies like Morgan Stanley to create a trust whose owner is secret to buy participatory notes with funds in safe havens.
4) The trust invests in India’s stock market and no questions asked because Participatory notes are exempt!!!
The amount is estimated to be 95 billion dollars, setup by Politically Exposed Persons (PEPs) to get the looted money back into India.
More details in the videos below: