"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 per cent of the paid-up capital of Bajaj Corp under the Portfolio Investment Scheme (PIS)," RBI said in a notification.
As of quarter ended September 2014, FIIs held 15.21 per cent in the company, according to BSE data.
The decision to hike foreign shareholding follows passage of resolution by Board of Directors and a special resolution by shareholders, agreeing to enhance the limit for purchase of its equity shares and convertible debentures by FIIs/RFPIs.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.
The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. It has fixed the cut-off points two percentage points lower than the actual ceiling.
Shares in Bajaj Corp closed 0.25 per cent up at Rs 399.45 apiece on the BSE.