Question

Q11. Consider the following statements:

1. Serious Fraud Investigation Office (SFIO) is setup to investigate corporate frauds.

2. It is under the jurisdiction of the Ministry of Corporate Affairs.

Which of the statements are correct?

• A. a) 1 only
• B. b) 2 only
• C. c) Both 1 and 2
• D. d) None of the above

Answer 1

The correct option is C

c) Both 1 and 2

Serious Fraud Investigation Office (SFIO)

• It is a fraud investigating agency
  • This office was set up to investigate corporate frauds of very serious and complex nature.
  • The mandate of SFIO is limited to investigating frauds relating to a company under the Companies Act and its investigation is considered separate from other normal investigation into the affairs of the company.
• It is under the jurisdiction of the Ministry of Corporate Affairs
• The SFIO is involved in major fraud probes and is the co-ordinating agency with the Income Tax Department and the Central Bureau of Investigation