The Reserve Bank of India (RBI) has Thursday hiked the foreign institutional investors (FIIs) and registered foreign portfolios investors (RFPIs) limit to invest 40% of the paid up capital of Ashok Leyland under the Portfolio Investment Scheme (PIS).

The RBI said, ''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/RFPIs.''

''The purchases could be made through primary market and stock exchanges and would be subject to Regulation 5(2) of FEMA Notification No.20/2000-RB dated May 03, 2000 (as amended from time to time) and other terms and conditions stipulated by the Reserve Bank. The Reserve Bank has notified this under FEMA 1999,'' it added.

Earlier, FIIs/RFPIs held 20.21% of the paid-up capital i.e 57.50 million shares. According to the new investment limit, FIIs/RFPIs can now hold a maximum of 113.84 million shares representing 40% of the paid-up capital.

Shares of the company declined Rs 0.15, or 0.17%, to trade at Rs 87.30. The total volume of shares traded was 546,867 at the BSE (9.37 a.m., Friday).