Trump Halts Enforcement of Foreign Corruption Law; Adani Group Stocks Skyrocket
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Synopsis
On February 11, 2023, US President Donald Trump signed an executive order suspending the enforcement of the Foreign Corrupt Practices Act, leading to significant stock gains for the Adani Group. This move was made to enhance the competitive edge of American companies in foreign markets.
Key Takeaways
- Trump suspends FCPA enforcement.
- Adani Group stocks rise significantly.
- New enforcement guidelines to be established.
- Current and past FCPA actions to be reviewed.
- Impact on US foreign policy and economic competitiveness.
Washington, Feb 11 (NationPress) Following the signing of an executive order by US President Donald Trump to suspend the enforcement of a law that bans US companies from bribing foreign officials, citing that the regulation disadvantages American businesses, all publicly traded stocks of the Adani Group experienced notable increases on Tuesday.
Trump's executive order aims to relax the enforcement of the Foreign Corrupt Practices Act (FCPA).
The US President instructed Attorney General Pam Bondi to pause actions under the Act until new enforcement guidelines are established, as stated in a fact sheet on the order. Furthermore, a review of all ongoing and past actions under the FCPA is set to take place.
According to a statement from the White House, “Since its introduction in 1977, the Foreign Corrupt Practices Act (15 U.S.C. 78dd-1 et seq.) has been consistently and increasingly misapplied, undermining the interests of the United States.”
Current enforcement of the FCPA is seen as hindering the United States' foreign policy goals, thereby affecting the President’s Article II powers related to foreign affairs.
The FCPA prohibits any US-affiliated company or individual from offering money or gifts to foreign officials to secure overseas business. Trump contemplated repealing the law during his first term.
“The President’s authority in foreign policy is inherently tied to the global economic competitiveness of American entities. The national security of the United States significantly relies on American companies securing strategic business advantages in crucial sectors like minerals, deep-water ports, and other essential infrastructure,” the statement highlighted.
“However, broad and unpredictable enforcement of the FCPA against American individuals and businesses—by our own Government—for typical business practices in other nations not only squanders limited prosecutorial resources that could be better used to protect American freedoms, but also detrimentally impacts our economic competitiveness and national security,” it stressed.
“Thus, it is the policy of my Administration to uphold the Presidential authority to manage foreign affairs and bolster American economic and national security by removing excessive obstacles to US commerce internationally,” the order stated.
In a crucial turn for the Adani Group, all its publicly traded stocks saw significant increases following US President Donald Trump's executive order aimed at reducing the enforcement of the FCPA.
The most prominent gainer was Adani Enterprises Ltd., which surged by 4.28 percent in its stock value. Close behind was Adani Power Ltd., which increased by 4.17 percent to Rs 511.90 per share. Adani Green Energy Ltd. also performed well, climbing 3.34 percent to Rs 985.90 per share.
New Delhi Television Ltd. experienced a rise of 3.84 percent to Rs 145 per share. Meanwhile, shares of Adani Energy Solutions Ltd., Adani Total Gas Ltd., and Adani Ports and Special Economic Zone Ltd. also recorded gains.
