State the sources within which the Indian mutual funds registered with SEBI are permitted to invest in overseas direct investment.

Indian Mutual Funds registered with SEBI are permitted to invest in overseas direct investment in the following: American Depositary Receipts (ADRs) / Global Depositary Receipts (GDRs) of the Indian and foreign companies; Equity of overseas companies listed on recognized overseas stock exchanges; initial and follow on public offerings for listing at recognized overseas stock exchanges; Foreign debt securities- short term as well as long term with rating not below investment grade - in the countries with fully convertible currencies; Money market investments not below investment grade; repos where the counter party is not below investment grade; Government securities where countries are not rated below investment grade; Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with underlying as securities; Short term deposits with banks overseas where the issuer is rated not below investment grade; and Units / securities issued by overseas Mutual Funds or Unit Trusts registered with overseas regulators.