Trump suspends US Foreign Corruption Act; Adani Group stocks surge
After US President Donald Trump signed an executive order halting the enforcement of a law that prohibits US companies from bribing foreign officials, citing competitive disadvantages for American firms, all listed stocks of the Adani Group saw substantial gains on Tuesday.
Trump’s executive order suspends enforcement of the Foreign Corrupt Practices Act (FCPA) and directs Attorney General Pam Bondi to pause actions under the law until new enforcement guidelines are established. Additionally, all current and past actions under the FCPA will be reviewed, according to a White House fact sheet.
“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,” a White House statement said.
The statement further argued that current FCPA enforcement impedes US foreign policy objectives and interferes with the President’s authority over foreign affairs under Article II of the Constitution.
The FCPA forbids any company or individual with US ties from offering money or gifts to foreign officials to secure business overseas. Trump had previously 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.
The order criticized the FCPA’s enforcement as excessive and unpredictable, arguing that it wastes prosecutorial resources and actively harms American economic competitiveness, which in turn affects national security.
“It is therefore the policy of my Administration to preserve the Presidential authority to conduct foreign affairs and advance American economic and national security by eliminating excessive barriers to American commerce abroad,” Trump’s order stated.
Following this decision, Adani Group stocks experienced a sharp surge.
The most significant gainer was Adani Enterprises Ltd., which saw a 4.28% increase in its stock price. Adani Power Ltd. followed closely, rising 4.17% to Rs 511.90 apiece, while Adani Green Energy Ltd. gained 3.34% to Rs 985.90 apiece.
New Delhi Television Ltd. (NDTV) shares also rose 3.84% to Rs 145 apiece, while Adani Energy Solutions Ltd., Adani Total Gas Ltd., and Adani Ports and Special Economic Zone Ltd. also saw positive movement.
