FCPA Scrutiny Of Indian Issuers
India based Azure Power Global Limited “is one of India’s leading utility scale renewable energy project developers and operators.”
Earlier this month, the company announced (see here) that, following its review of the determination of the staff of New York Stock Exchange Regulation to delist the Company’s equity shares from trading on the New York Stock Exchange LLC on October 30, 2023, a Committee of the Board of Directors of the NYSE reached a final decision to uphold the delisting determination. On October 31, 2023, the NYSE filed a Form 25 notification of removal from listing with the U.S. Securities and Exchange Commission (the “SEC”).
Scrutiny Updates
Honeywell
As highlighted in this prior post, in mid-2019 Honeywell disclosed that it was cooperating with DOJ/SEC and Brazilian law enforcement investigations relating to its use of third parties in relation to Petrobras business as well as a matter involving a foreign subsidiary’s prior engagement of Unaoil in Algeria.
In its most recent quarterly filing disclosed:
Scrutiny Of Indian Issuer Grows
There have been several Foreign Corrupt Practices Act enforcement actions regarding conduct in India (see here for some of the actions). Certain of those enforcement actions involved the conduct of Indian subsidiaries of U.S. issuers.
However, it is believed that there has never been an FCPA enforcement action against an Indian issuer.
That may change.
As highlighted in this prior post, in November 2020 Dr. Reddy’s Laboratories Ltd., (an India-based pharmaceutical company with ADRs listed on the New York Stock Exchange) disclosed that it “has commenced a detailed investigation into an anonymous complaint” alleging that “healthcare professionals in Ukraine and potentially in other countries were provided with improper benefits in violation of U.S. laws.”
Indian Issuer Discloses Investigation
Dr. Reddy’s Laboratories Ltd., an India-based pharmaceutical company with ADRs listed on the New York Stock Exchange recently disclosed that it “has commenced a detailed investigation into an anonymous complaint.”
According to this filing: “The complaint alleges that healthcare professionals in Ukraine and potentially in other countries were provided with improper benefits in violation of U.S. laws. The investigation is being carried out by a reputed independent U.S. law firm.”