France-based FPIs' assets under custody jump nearly 10% in August

France-based FPIs' assets under custody rose 9.9 per cent in August, driven almost entirely by equities, with holdings increasing by Rs 16,303 crore during the month

Assets under custody (AUC) of France-based Foreign Portfolio Investors (FPIs) rose 9.9 per cent month-on-month to ₹1,81,281 crore in August, according to National Securities Depository (NSDL) data.

 

The increase of ₹16,303 crore was the sharpest single-month addition this year, taking cumulative net additions from April to August 2026 to ₹26,018 crore.

 

The rally was driven almost entirely by equities. Direct FPI equity holdings of France-based FPIs surged ₹16,236 crore, or 10.7 per cent, to ₹1,67,457 crore in August, after a dip of ₹2,886 crore in July. Equity accounted for over 92 per cent of total France-based FPI AUC.

 

France is among the top 10 countries in terms of FPI AUC, with over 70 FPIs registered from the country. 

 

 

Experts attributed the surge to MSCI rebalancing on the last day of August, with a few FPIs dominating buying.

 

They said the February 2026 Amending Protocol updating the India-France Double Taxation Avoidance Convention was not behind the uptick, as it provides no grandfathering benefits and is yet to be notified.

 

Debt exposure remained subdued. Debt General Limit holdings stood at ₹2,752 crore, unchanged from July, while Debt-FAR was flat at ₹8,582 crore.