MARKETS | PAGE 7 COMPANIES | PAGE 5 Mizuho to buy majority Avendus stake from KKR INTERNATIONAL | PAGE 10 OpenAI & Google woo Indian userswith freebies CHENNAI/KOCHI, THURSDAY, DECEMBER 18, 2025 Warner Bros turns down $108-bn Paramount bid FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLVI 190, 26 PAGES, `12 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 84,559.65 ▼ 120.21 NIFTY: 25,818.55 ▼ 41.55 NIKKEI 225: 49,512.28 ▲ 128.99 HANG SENG: 25,468.78 ▲ 233.37 `/$: 90.38 ▲ 0.66 `/€: 105.89 ▲ 1.12 BRENT: $59.74 ▲ $0.82 GOLD: `1,31,922 ▲ `367 Business Schools A RED initiative appears in today’s edition of Financial Express. This magazine is an initiative of the marketing solutions team of The Indian Express Group and contains content paid for by advertisers. The magazine should be read as an advertisement IN THE NEWS ECONOMY PAGE 2 HOUSE CLEARS BILL ON 100% FDI IN INSURANCE PARLIAMENT ON WEDNESDAY passed a Bill to raise foreign direct investment (FDI) in the insurance sector to 100% from the current 74%, reports fe Bureau. MARKETS PAGE 6 AIF INVESTMENTS IN LISTED SPACE RISE NEARLY 50% THE INVESTMENTS MADE by AIFs in listed securities have surged 48.35% on year till the end of September, according to the latest data available with markets regulator Sebi, reports Ananya Grover. » INSIDE « DAYSAFTERLISTING,MEESHO M-CAPNEARS`1LCR PAGE 6 INDIA, OMAN TO SIGN FREE TRADE PACTTODAY PAGE 3 PAGE 7 MARKETS RBI GOVERNOR SIGNALS RATES TO STAY LOW FOR 'LONG PERIOD' HDFC Bank trims FD rates, caps peak at 6.45% HDFC BANK ON Wednesday reduced its fixed deposit (FD) rates, capping them at 6.45% for retail deposits of less than `3 crore, following the 25 bps rate cut by the RBI, reports fe Bureau. ■ PAGE 6 CONFLICTOFINTERESTRULES INABEYANCE Sebi reduces cost for MF investors ● Newframework simplifies stock brokerregulations NEW EXPENSE RATIO LIMITS Current (including statutory levies) Revised (excluding statutory levies) (in %) THE SECURITIES AND Exchange Board of India’s (Sebi) board on Wednesday made sweeping changes in the expense ratio of mutual funds, removed obsolete regulations for stock brokers and allowed debt issuers to incentivise investors, among other measures. However, the implementation of the high-level committee report on conflict of interest has been kept in abeyance for now, as the board felt that there should be a detailed discussiononthisaftersectionsof employeesexpressedconcerns, and operational modalities. The most significant changewas in the mutual fund expense ratio. Mutual fund investors are expected to pay a lowerexpense nowas the markets regulatorhas made a clear demarcation between statutoryand regulatorylevies,brokerage fees and the base expense ratio (BER). So, the total expense ratiowill include BER,brokerage,regulatoryand statutory levies. Also, with the sharp cut in 1.0 0.9 Equity oriented schemes- 1.25 1.00 Other than equity oriented schemes- Index funds/exchange traded funds (ETFs): NESIL STANEY Mumbai, December 17 Close-ended schemes 1.00 0.80 Fund of funds (FoFs) Investing in liquid schemes/index funds/ETFs TUHIN KANTA PANDEY CHAIRMAN, SEBI 1.0 0.9 When there are some worries (on IPO pricing), we place guardrails.... Markets are free, and people should choose Investing >65% ofAUM in equity oriented schemes 2.25 2.10 Other FoFs 2.0 1.85 brokeragefeesfrom12paiseto 6 paise in the cash market and 5 paise to 2 paise in the derivative market (exclusive of levies), investors are expected to benefit. However, the markets regulator has not unbundled researchandbrokerage,asproposed initially. “This model is not feasible today, and attempts to imple- ment it elsewherewere unsuccessful. It led to a decline in sell-side research coverage, which is detrimental not only to brokerage clients but also to retail investors who rely on such research for independent investment decisions,” said Sebi Chairman Tuhin Kanta Pandey. Continued on Page 7 Debt reduction central to fiscal policyfrom FY27,says FM ● States urged to improve fiscal transparency NIRMALA SITHARAMAN FINANCE MINISTER FE BUREAU New Delhi, December 17 FINANCE MINISTER NIRMALA SITHARAMAN on Wednesday made it clear that reducing the debt-to-GDP ratio will be the central pillar of the government’s fiscal policy from the next financial year, with the fiscal deficit continuing as an important marker to operationalise the architecture. Speaking at a Times Network event, Sitharaman also The Centre has set cleargoals fortransparencyin Budgetmaking,ensuring fiscal management isvisible to all underlined the need for states to align with the Centre’s fiscal approach. “The central government has set clear goals for transparency in Budget-making, ensuring that fiscal management is visible to all and meets the highest standards of accountability,” she said. Theminister’sreiteration of debt becoming AFTERTHREE BRUISING years of funding slowdown and aggressive cost-cutting, the country’s startup ecosystem is beginning to show early signs of labour market stabilisation, withlayoffseasingbothinscale and frequency in 2025. Data from layoffs.fyi,which tracks global technology job cuts, show that 33 domestic startups have laid off 6,995 employees so far this year.This marks a sharp improvement from the same period in 2024, when 44 startups cut 9,195 jobs. In percentage terms, the number of firms resorting to layoffs has fallen by25%,while total job losses are down nearly 24% year-on-year.The moderation suggests that startups are moving past headcount ratio- CHRISTINATITUS Mumbai, December 17 AFTER CLOSING AT new lows for four consecutive sessions, the rupee recovered by 66 paise on Wednesday to closeat`90.38againstthedollar — the biggest single-day gain in two months. According to dealers, the Reserve Bank of India (RBI) stepped in with dollar sales to stem the continuous decline and curb speculation. During intra-day trade, the local currencyappreciatedalmost1%to RECOVERY MODE Close 0.72% 91.03 Previous us close Inverted scale a high of 90.09. The rupee,which breached the91-markforthefirsttimeon Tuesday,hashitmultiplerecord Employees 16,398 14,224 9,195 6,995 59 112 44 33 2022 2023 2024 2025* nalisation and adopting a more measured approach to growth. The improvement comes after a prolonged correction phase triggered bythe collapse of easy capital following the 2021 funding boom.Through 2023 and much of 2024,startups responded to tightercapital availability by trimming *till Dec 17 Source: layoffs.fyi teams, shutting non-core businesses and prioritising profitability over expansion. While hiring has not returned to the pace seen during peak funding years, the era of frequent mass layoffs appears to be nearing an end. Continued on Page 7 Price-sensitive consumers, high rentals prompt shift away from premiumisation Starbucks smells the coffee VIVEAT SUSAN PINTO Mumbai, December 17 PREMIUMISATION MAYBE the preferredgo-to-marketstrategy for many consumer companies in India, as rising aspirations and higher disposable incomes fuelgrowthatthetopend.Buta growingsetofretailersistaking thereverseroute—shiftingfrom premium to mass—as the need to expand and adapt to local marketrealitiesforcesarethink. Brands such as Skechers, Domino’s,Decathlon and Starbucks are among those recalibratingtheirstrategies,industry experts told FE. TataGroup-runStarbucksis thelatestglobalbrandtoexplore alower-costoperatingmodelin India, seeking to address the price-sensitive yet aspirational consumers, high rentals and uneven demand trends. InFY25,Starbucks’revenue from operations rose 5%yearon-year to `1,277 crore, but losses widened sharply to `135.7 crore, with half borne PRICING IT RIGHT ■ Starbucks operates 500 stores across 81 cities, but profitability remains elusive ■ It is now exploring a lowercost, more functional store and menu model Brands that made the pivot: ■ In FY25, the firm’s losses surged to `135.7 cr against the previous year SKECHERS Entry prices fell from `4,000+ to under `1,000-2,000; India now among top global markets DOMINO’S Local pricing and menus helped it become the country’s largest pizza chain with 2,000+ stores DECATHLON Mass-access sports retail model; plans to double sales to `4,000 cr and expand from 55 to 90+ cities by its Indian partner. In FY24, the company had reported a loss of `82 crore on revenue of `1,218 crore.An email sent to Tata ConsumerProducts,Starbucks’ Indian partner in the 50:50 joint venture Tata Starbucks, remained unanswered until press time. Retail and management expertssaythepivotreflectsthe need to participate in the larger growthopportunityatthelower end of the market.“Brands like Starbuckshavelargelysaturated the top end, with a presence across 81 cities and about 500 stores. The question now is: what next?” said Ankur Bisen, seniorpartnerandheadofretail, consumerproducts and food at The Knowledge Company (for- ■ The rupee Rupee vs dollar (Intra-day, Dec 17) 90.38 FIRING LINE Companies Continued on Page 7 RereboundsasRBIcomestotherescue Startuplayoffsmoderate; fundingremainstight AYANTI BERA Bengaluru, December 17 the key fiscal anchor, ahead of the Budget for FY27, signals availability of moderately higherleewayonthefiscalfront in the next financial year. In Budget FY26, the minister had committed to “staying the course for fiscal consolidation”, but added that the endeavour would be to keep the fiscal deficit each year such that the Central government debt remainsonadecliningpathasa percentage of the GDP. This allows a bit of additional flexibility on the quantum of fiscal deficit reduction in a given year. merlyTechnopakAdvisors). “As you move down the pyramid, you encounter aspirational but value-conscious consumers. That requires a low-cost model—more accessible price points, simpler menus and functional store formats,”he added. Continued on Page 7 CHENNAI/KOCHI recovered by 66 p —the biggest single-day gain in two months ■ The local cur- rency breached the 91-mark for the first time on Tuesday lows over the past week. The slide from 90 to 91 took less than twoweeks. “Without the RBI interven- »INSIDE« FPI DEBT INFLOWS HINGE ON TRADE DEAL CLARITY, RUPEE STABILITY PAGE 7 tion,market speculation would have driven the rupee even weaker,with more short positions risking a slide to even 91.5-92. The RBI drew a clear line at 91 today (Wednesday) through its tactical intervention,” said Dhiraj Nim, economist & FXstrategist,ANZ Bank. Continued on Page 7