Serious Fraud Investigation Office (SFIO): Concise Exam Notes
Overview
- The Serious Fraud Investigation Office (SFIO) is a multidisciplinary organisation under the Ministry of Corporate Affairs (MCA).
- It investigates serious corporate frauds and white-collar crimes.
- Its headquarters is located in New Delhi.
- It is headed by a Director in the rank of Joint Secretary to the Government of India.
Establishment and Legal Status
- SFIO was initially established through a Government of India resolution dated 2 July 2003.
- Initially, it did not have formal statutory status.
- Section 211 of the Companies Act, 2013 granted statutory status to SFIO.
Composition
SFIO comprises experts from several fields, including:
- Accountancy
- Forensic auditing
- Law and company law
- Information technology
- Investigation
- Capital markets
- Taxation
Major Functions and Powers
- Investigates complex and serious corporate frauds.
- Detects white-collar crimes involving companies.
- Prosecutes offenders or recommends their prosecution.
- Has the power to arrest persons for specified offences under the Companies Act, 2013.
- Uses multidisciplinary expertise to examine financial transactions, digital evidence and corporate records.
Computer Forensic and Data Mining Laboratory
- The Computer Forensic and Data Mining Laboratory (CFDML) was established in 2013.
- It provides digital-forensic and data-mining assistance to SFIO officers during investigations.
When Can an SFIO Investigation Be Ordered?
Under the Companies Act, 2013, the Central Government may assign an investigation into a company’s affairs to SFIO:
- On receiving a report from the Registrar of Companies or an inspector under Section 208.
- On receiving intimation of a special resolution passed by the company requesting an investigation.
- When an investigation is considered necessary in the public interest.
- On the request of any department of the Central Government or a State Government.
Quick Revision Facts
| Point | Fact |
|---|---|
| Full form | Serious Fraud Investigation Office |
| Administrative ministry | Ministry of Corporate Affairs |
| Headquarters | New Delhi |
| Established | 2 July 2003 |
| Statutory provision | Section 211, Companies Act, 2013 |
| Head | Director |
| Director’s rank | Joint Secretary to the Government of India |
| Digital-forensic laboratory | CFDML |
| CFDML established | 2013 |
| Investigation entrusted by | Central Government |
| Section 208 | Report on inspection |
Exam takeaway: SFIO was created in 2003, but it received statutory status only through Section 211 of the Companies Act, 2013.