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KPMG partner fined for AI ethics cheat

A senior partner at KPMG Australia has been fined A$10,000 (around US$7,000) for using artificial intelligence to cheat on an internal AI ethics course, highlighting the tricky balance between technology and professional responsibility. The partner reportedly fed the mandatory training questions into a generative AI tool to generate answers, breaking company rules and raising concerns about integrity in AI use.

The breach, which occurred in July 2025, was detected through KPMG’s internal monitoring system, designed to ensure employees follow proper procedures while using AI. As part of the disciplinary action, the partner must retake the training and will face a reduction in future pay. The individual has also reported themselves to Chartered Accountants Australia and New Zealand, which is investigating the case.

The case drew attention during an Australian Senate inquiry into industry oversight. Greens senator Barbara Pocock called current regulations “toothless,” noting that professional misconduct often goes unreported unless individuals come forward. The Australian Securities and Investments Commission (ASIC) has been notified but will await the accounting body’s findings before taking further action.

KPMG revealed that this incident is part of a larger trend: so far this financial year, 28 staff members, from junior employees to managers, have misused AI to bypass mandatory training tests. KPMG’s chief executive, Andrew Yates, acknowledged the difficulty of policing AI misuse, given its rapid adoption in workplaces, and stressed that the firm is refining its policies and education programs to prevent future incidents.

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Kwality Wall’s opens lower, shares fall 26% on first day

Shares of Kwality Wall’s (India) Ltd, the ice cream business recently spun off from Hindustan Unilever Ltd (HUL), made a cautious debut on Indian stock exchanges on February 16, 2026, settling at a notable discount to its indicative price.

The stock opened at ₹29.80 on the NSE and ₹29.90 on the BSE, down about 26 % from the adjusted reference price of ₹40.20, reflecting investor caution over the standalone valuation of the company. The listing placed the market capitalisation of Kwality Wall’s at roughly ₹7,000–₹7,350 crore.

The demerger, effective December 1, 2025, allowed HUL shareholders to receive one share of Kwality Wall’s for every HUL share held as of the December 5 record date. This made Kwality Wall’s the first publicly listed pure-play ice cream company in India, aiming to operate independently and focus on growth in the frozen desserts sector.

In conjunction with the listing, The Magnum Ice Cream Company HoldCo 1 Netherlands B.V. and associated entities launched an open offer to acquire up to 61.08 crore shares from the public at ₹21.33 per share, under the supervision of Kotak Mahindra Capital.

The listing is part of HUL’s broader strategy to streamline its portfolio, letting its ice cream business operate with greater flexibility. Market observers noted the subdued debut as investors evaluate the company’s prospects amid seasonal demand fluctuations and competition in the Indian ice cream market.

Also Read: Blackstone backs Neysa’s $1.2 bn AI cloud expansion

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Blackstone backs Neysa’s $1.2 bn AI cloud expansion

Indian AI cloud platform Neysa is set to receive $1.2 billion from private equity firm Blackstone and other investors. The funding includes $600 million in equity and plans for $600 million in debt.

Founded in 2023 by Sharad Sanghi, Neysa provides GPU‑based AI infrastructure for enterprises, government bodies, and research labs. The new capital will help expand its GPU network across India, supporting AI development while ensuring data sovereignty.

Participating investors include Teachers’ Venture Growth, TVS Capital Funds, 360 ONE Assets, and Nexus Venture Partners. Blackstone will become the majority shareholder once the deal closes.

The funding strengthens India’s AI ecosystem, enabling local organisations to train and deploy AI models domestically. Neysa plans to scale its GPU capacity significantly, serving startups, hyperscalers, and large enterprises more efficiently.

Sanghi said the move aligns with India’s broader AI goals, offering secure, cost-effective compute solutions. Blackstone views the investment as part of its strategy to back critical digital infrastructure in growing AI markets.

Prior to this round, Neysa had raised around $50 million from early investors including Matrix Partners India and Nexus Venture Partners.

Also Read: Fractal Analytics IPO opens softly, lists 3% below price

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Sensex rises 650 points, Nifty tops 25,680

Markets rebounded sharply on Monday, the BSE Sensex surged 650.39 points to close at 83,277, while the NSE Nifty50 gained 211.65 points to settle at 25,683, marking a strong recovery in key benchmark indices.

The rally was largely led by banking, energy, and realty stocks, which drew significant buying interest. Private and public sector banks, including HDFC Bank and SBI, emerged as the top gainers, along with Reliance Industries and NTPC in the energy segment. In contrast, some sectors, including automobiles and media, recorded muted gains or small losses, with Maruti, Tata Motors, and Zee among the top laggards.

Analysts attributed Monday’s rebound to a combination of value buying after recent declines, positive sectoral movements, and improved investor sentiment.

Sectoral performance was broad-based, with FMCG, healthcare, and select industrial stocks also contributing to the market upswing. Power and realty stocks saw meaningful gains, reflecting renewed confidence among investors following a two-day slump.

The strong close added roughly ₹3 lakh crore to overall market capitalization, signaling a recovery in investor confidence. Broader markets mirrored this trend, with mid-cap and small-cap indices also ending the day in positive territory.

Global cues were mixed during the session, but domestic buying interest dominated trading sentiment, helping the markets snap their recent downward trend.

Also Read: Sensex falls over 100 points, Nifty slips below 25,450

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Fractal Analytics IPO opens softly, lists 3% below price

Fractal Analytics, one of India’s leading AI and advanced analytics companies, saw its shares enter the market on a subdued note on Monday, February 16, 2026. The stock opened at ₹876 on the NSE, around 3% below its ₹900 IPO price, while the BSE listing remained nearly flat.

The company raised ₹2,834 crore through its IPO, combining a fresh issue of ₹1,023 crore and an offer for sale of ₹1,810 crore from existing shareholders. Though the IPO was 2.66 times subscribed, most interest came from institutional investors, with retail participation being modest.

Market experts say the soft listing reflects caution over high valuations for AI-focused firms. While short-term gains may be limited, analysts see long-term potential for investors betting on the global growth of AI and analytics.

Founded in 2000, Fractal Analytics serves global clients across consumer goods, retail, healthcare, technology, and finance. In FY25, it reported revenue of ₹2,765 crore and a net profit of ₹220.6 crore, bouncing back from previous losses.

Proceeds from the IPO will fund U.S. expansion, R&D, debt repayment, and strategic growth initiatives, supporting the company’s ambition to strengthen its global footprint.

Also Read: OpenClaw creator Peter Steinberger joins OpenAI

 

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Bengaluru gets Nothing’s first India flagship outlet

Consumer technology brand Nothing has strengthened its presence in India with the launch of its first flagship retail store in Bengaluru, signalling a clear shift towards offline expansion in one of its most important global markets. The store, located at Indiranagar’s 100 Feet Road, was inaugurated by co-founder and CEO Carl Pei along with India president Akis Evangelidis.

The Bengaluru outlet is the company’s second flagship store worldwide after London and has been designed as a large experiential space where customers can explore and interact with the brand’s full product ecosystem. Spread across two floors, the store allows visitors to try out Nothing smartphones, audio devices, CMF products and accessories through dedicated demo zones.

Moving beyond the traditional retail format, the space focuses on community engagement and immersive product experience. It features areas for content creation, product personalisation and merchandise, reflecting the brand’s digital-first identity and strong creator-led marketing strategy. The store’s industrial design, inspired by assembly lines, uses raw textures and bold visual elements to mirror Nothing’s transparent and minimalist product philosophy.

The opening saw enthusiastic response from fans, with long queues and strong footfall on day one. The outlet will be open to customers throughout the week, offering hands-on support, service assistance and exclusive merchandise.

India continues to be a key growth market for Nothing, both in terms of sales and manufacturing. The company has been steadily expanding its retail footprint through partners and is now investing in flagship spaces to build deeper connections with its user community. The Bengaluru launch is part of a broader global plan to open similar stores in major cities.

Also Read: Big Tech like ‘East India Company’, says Zoho’s Sridhar Vembu

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Big Tech like ‘East India Company’, says Zoho’s Sridhar Vembu

Sridhar Vembu, co-founder of Zoho, has raised concerns over the growing technological and financial power of global Big Tech companies, saying their control over digital infrastructure now rivals that of sovereign nations and requires an urgent strategic response from countries like India.

His remarks came after Alphabet raised nearly $32 billion through a bond sale, including ultra-long 100-year debt. Vembu pointed out that such large and long-term capital mobilisation, typically associated with governments,  allows hyperscalers to invest aggressively in artificial intelligence, global cloud regions, subsea cable networks and large-scale data centres.

According to him, companies such as Google and Meta have moved beyond being software providers to become core digital infrastructure operators. Their platforms today support communication, enterprise applications, digital advertising, developer ecosystems and AI workloads used by startups, corporations and even public sector projects.

Vembu said this creates deep structural dependence as businesses build their products on foreign cloud and AI stacks, making switching difficult due to high migration costs, data gravity and platform lock-in. He added that while India contributes significantly in terms of engineering talent and data generation, a large share of the economic value is captured by overseas platform owners.

Calling for “technology sovereignty,” he stressed the need for long-term investments in domestic cloud infrastructure, AI capabilities, semiconductor ecosystems and globally competitive SaaS products. Owning the technology stack, he said, is critical for ensuring innovation, retaining economic value and maintaining strategic autonomy in the digital economy.

Vembu’s broader message is that in the AI-driven era, control over compute, data and digital platforms will define economic power, and nations that fail to build indigenous capabilities risk remaining dependent consumers in the global technology value chain.

Also Read: Press Note 3 review to speed up minor FDI deals

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Sensex falls over 100 points, Nifty slips below 25,450

The equity benchmarks opened lower on Monday as the BSE Sensex slided over 100 points in early trade, while the NSE Nifty50 dipped below the 25,450 mark.

The weak start came despite mixed global cues. Asian markets traded cautiously, and Gift Nifty signalled a muted opening, keeping traders on edge at the start of the week.

Gainers provide limited support, where select banking and auto stocks managed to trade in the green, helping limit deeper losses. On the gaining side, Power Grid and HDFC Bank featured among the top performers, providing some support to the broader market. However, buying interest remained selective, indicating cautious market participation.

Heavyweights in the IT sector were among the top losers in early trade. Infosys and ICICI Bank were among the top losers in morning trade, dragging the indices lower. Energy and select consumer stocks reeled under the selling pressure as investors continued to book profits after last week’s sharp correction.

Last Friday, the Nifty had dropped more than 300 points, driven by weakness in IT, energy, and consumer sectors. Monday’s soft opening suggests that investors are still assessing global trends and domestic triggers before taking fresh positions.

Unless strong buying emerges, markets may continue to trade in a narrow range with high volatility.

Also Read: Apple’s 6th India store to open in Borivali on Feb 26

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Cognizant warns AI could hit legacy services

Cognizant Technology Solutions has highlighted potential risks from artificial intelligence (AI) and automation in its latest annual report. The company warned that some traditional IT services could face lower demand or pricing pressures as clients increasingly adopt AI-driven solutions.

In its 2025 annual 10‑K filing, Cognizant noted that while AI offers opportunities, the notion that new AI tools can instantly replace large parts of enterprise IT work is “misplaced.” The firm emphasized that the transition to AI-enabled services will be complex and gradual.

The disclosure aligns Cognizant with other IT giants who are openly acknowledging AI’s potential to reshape traditional outsourcing and labor-intensive services. Analysts say this could pressure firms to rethink offerings, reskill employees, and adapt cost structures to stay competitive.

CEO Ravi Kumar S recently reiterated that while AI adoption is accelerating, its economic impact on existing enterprise IT workloads is not yet large enough to immediately replace legacy services.

Besides AI, Cognizant’s annual report also pointed to regulatory and reputational risks related to offshore outsourcing. Changes in laws or client perceptions could affect delivery models and workforce strategies, adding another layer of uncertainty to operations.

Despite these risks, Cognizant continues to invest in AI, cloud, and digital transformation services, aiming to help clients modernize and scale. The company is balancing growth opportunities with caution, ensuring emerging technologies do not cannibalize core business segments.

Also Read: Uday Kotak takes charge as Chairman of GIFT City

 

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Tamil Nadu, KLA sign ₹3,600 cr R&D MoU in Chennai

The Tamil Nadu government has signed a Memorandum of Understanding (MoU) with US-based semiconductor equipment company KLA Corporation to set up a large research and development (R&D) and innovation campus in Chennai.

Under the agreement, KLA will invest up to $400 million (around ₹3,600 crore) over the next decade. The proposed campus will come up on about 12 acres and is planned to expand in phases, with the built-up area expected to eventually reach nearly 1.5 million square feet.

The MoU was signed in the presence of Chief Minister M. K. Stalin and Industries Minister T. R. B. Rajaa, along with senior government officials and representatives from KLA.

The upcoming facility is expected to generate up to 4,000 high-skilled jobs over the next 10 years. These roles will largely focus on advanced semiconductor research, software development, artificial intelligence (AI), high-performance computing, and engineering solutions that support chip manufacturing and process control.

Officials said the investment strengthens Tamil Nadu’s position in the global semiconductor value chain and reflects growing international confidence in the state’s industrial policies, infrastructure, and skilled talent pool. The government has been actively working to attract high-technology investments as part of its broader strategy to develop a strong electronics and semiconductor ecosystem.

KLA already has operations in Chennai, and the new campus will significantly expand its footprint in India. Company representatives said the proposed R&D and innovation centre will serve as a major hub for global engineering and AI-led semiconductor solutions, helping India play a larger role in advanced chip technologies.

The project is seen as a major step in boosting research-driven growth, high-value employment, and long-term technology development in the state.

Also Read: Reliance gets US permit to import Venezuelan oil