After US President Donald Trump signed an executive order to put on hold the implementation of a law that prevents US firms from bribing foreign officials, stating that the ban puts American companies at a disadvantage, all the stocks of the Adani Group mentioned in the list saw significant upside on Tuesday.
Trump has signed an executive order that eases the enforcement of the Foreign Corrupt Practices Act, or FCPA. According to a fact sheet on the executive order, the US President directed Attorney General Pam Bondi to suspend actions under the Act until she establishes new enforcement guidelines.
All actions under the FCPA, both current and past, will be reviewed. "Since its enactment in 1977, the Foreign Corrupt Practices Act (15 U.S.C. 78dd-1 et seq.) (FCPA) has been systematically, and to a steadily increasing degree, stretched beyond proper bounds and abused in a manner that harms the interests of the United States," according to a White House statement.
Current FCPA enforcement impedes the United States’ foreign policy objectives and therefore implicates the President’s Article II authority over foreign affairs. The FCPA forbids any company or individual with US ties from offering money or gifts to foreign officials to secure business overseas.
Trump had considered eliminating the law during his first term. “The President’s foreign policy authority is inextricably linked with the global economic competitiveness of American companies.
American national security depends in substantial part on the United States and its companies gaining strategic business advantages whether in critical minerals, deep-water ports, or other key infrastructure or assets," the statement said.
"But overexpansive and unpredictable FCPA enforcement against American citizens and businesses — by our own Government — for routine business practices in other nations not only wastes limited prosecutorial resources that could be dedicated to preserving American freedoms, but actively harms American economic competitiveness and, therefore, national security," it emphasized.
It is thus the policy of my Administration to preserve the Presidential authority to conduct foreign affairs and advance American economic and national security by removing excessive barriers to American commerce abroad," the order said.
In a development critical for the Adani Group, all of its listed stocks jumped sharply yesterday following US President Donald Trump's move to relax enforcement of the Foreign Corrupt Practices Act in his newly minted administration. The highest gainer among its listed equities was Adani Enterprises Ltd. whose scrip advanced by 4.28 per cent during the session.
Adani Power Ltd. followed closely by increasing 4.17 per cent to Rs 511.90 apiece, and Adani Green Energy Ltd. jumped the third with 3.34 per cent on Rs 985.90 apiece. The share of the New Delhi Television Ltd. was also up with a 3.84 per cent rise on Rs 145 apiece. Whereas, shares of Adani Energy Solutions Ltd., Adani Total Gas Ltd., and Adani Ports and Special Economic Zone Ltd. were also up.
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