Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of Indian stock market without registering themselves directly?

The correct option is Participatory Note.

Explanation and Logical Reasoning:

1. What are Participatory Notes (P-Notes)?
Participatory Notes (also known as P-Notes or PNs) are derivative instruments issued by registered Foreign Portfolio Investors (FPIs) or Foreign Institutional Investors (FIIs) to overseas investors who wish to invest in Indian stock markets without registering directly with the Securities and Exchange Board of India (SEBI).

2. How do they work?
FPIs/FIIs registered with SEBI purchase Indian securities and then issue Participatory Notes to non-resident investors. The performance of these notes is tied directly to the underlying Indian stocks or securities, allowing foreign investors to gain exposure to the Indian market while avoiding the regulatory compliance, paperwork, and registration process required by SEBI.

3. Why other options are incorrect:
- Certificate of Deposits (CDs): Money market instruments issued by commercial banks to raise short-term funds.
- Commercial Paper (CP): Unsecured, short-term debt instruments issued by corporations to meet short-term liabilities.
- Promissory Note: A financial instrument containing a written promise by one party to pay another party a definite sum of money on demand or at a specified future date.