Overseas direct investment rules: two routes govern resident investments abroad with mandatory valuation, reporting and funding conditions. Direct investment in JVs/WOS abroad by resident Indian corporates and partnership firms is regulated under FEMA with two routes: the Automatic Route-permitting investments within an Indian party's net worth ceiling where financial commitment (equity, loans, half of guarantees) and fit and proper criteria are met and transactions are routed through one designated authorised dealer-and the Normal Route-requiring prior RBI approval for proposals outside automatic route conditions. Mandatory filings, valuation norms, approved funding sources, equity participation requirement for loans/guarantees, obligations to obtain share certificates, repatriate dues, and annual reporting (APR) with audited statements are stipulated; non compliance is subject to FEMA penalties.