The Reserve Bank of India (RBI) has notified that foreign institutional investors (FIIs)/ Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49% of the paid up capital of Hero MotoCorp (Earlier Hero Honda Motors) under the Portfolio Investment Scheme.

The Reserve Bank has stated that the company has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs.

The purchases could be made through primary market and through stock exchanges and would be subject to Regulation 5(2) of FEMA Notification No.20 dated May 03, 2000 (as amended from time to time) and other terms and conditions stipulated by the Reserve Bank.

Shares of the company declined Rs 51.9, or 1.68%, to settle at Rs 3,034.80. The total volume of shares traded was 21,270 at the BSE (Tuesday).