In a major policy shift, US President Donald Trump has signed an executive order suspending the enforcement of the Foreign Corrupt Practices Act (FCPA), a law that prohibits American businesses and foreign firms from bribing foreign officials to gain business advantages. The move, aimed at enhancing US business competitiveness, has triggered global debate on anti-corruption enforcement.

Why Has Trump Suspended FCPA Enforcement?

The 1977 Foreign Corrupt Practices Act (FCPA) has long been a cornerstone of US anti-corruption laws, preventing corporations from engaging in bribery abroad. However, the Trump administration argues that strict enforcement has disadvantaged American businesses, while international competitors often bypass such restrictions.

The executive order instructs US Attorney General Pam Bondi to:

• Pause all new FCPA investigations for 180 days.
• Review past cases and enforcement policies.
• Determine exceptions where prosecution might be necessary.
• Develop new guidelines on FCPA enforcement based on the review.

Potential Impact on Adani Group’s Bribery Case

One of the most high-profile cases impacted by this policy shift involves Indian billionaire Gautam Adani and his nephew Sagar Adani. Under the Biden administration, the US Department of Justice (DOJ) had charged the Adani Group with orchestrating a $250 million bribery scheme to secure favorable solar power contracts in India.

While Adani Group has denied all allegations, the case was pursued under the FCPA due to links with American investors and markets. Now, with the DOJ pausing all new investigations and reviewing existing cases, there is a strong possibility of relief for Adani and other entities caught in similar probes.

The executive order states that DOJ must reassess all ongoing FCPA cases and determine whether they align with US foreign policy and economic interests. If deemed unnecessary or inappropriate, certain investigations could be dropped entirely.

US Congress Raises Concerns Over DOJ’s Conduct

The FCPA-related case against Adani Group had already drawn criticism from US lawmakers. A group of six US Congressmen, including Lance Gooden, Pat Fallon, Mike Haridopolos, Brandon Gill, William Timmons, and Brian Babin, wrote a letter to Attorney General Pamela Bondi questioning "selective targeting" of cases under the Biden administration.

In their letter, they warned that such legal actions risk damaging US-India relations, a crucial partnership between two of the world’s largest democracies. The Congressmen criticized past DOJ decisions, arguing that politically motivated investigations harmed US interests both domestically and internationally.

They emphasized that India is a close ally and that strengthening US-India trade and diplomatic relations should be a priority.

What Happens Next?

With FCPA enforcement on hold, the DOJ must complete its review within six months. During this time, no new cases will be initiated, and existing investigations, including the Adani case, could be reconsidered.

If Trump further softens anti-bribery laws, it could mark a major shift in US foreign policy, potentially redefining corporate ethics and global business norms.

The Upcoming IPOs in this week and coming weeks are Quality Power Electrical Equipmwnt, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Ajax Engineering, Chandan Healthcare..

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.