Corporate fraud investigating agency, SFIO, likely to get more powers soon

NEW DELHI: The country's corporate fraud investigating agency, SFIO, would soon be given suo-motu powers to initiate probes if the recommendations of the Parliamentary Standing Committee on Finance, which is reviewing the Companies Bill, are accepted by the corporate affairs ministry.

Given that corporate frauds are becoming increasingly sophisticated with the improvement in technology, SFIO has been demanding more powers, in line with those enjoyed by Income Tax authorities, Customs Department, Enforcement Directorate, etc.

"The revised Companies Bill has provisions to give SFIO suo motu powers to enable it to initiate probes on its own and also on the basis of analysis done by its competent Market Research and Analysis Wing," Veerappa Moily, minister of corporate affairs, told ET.

The agency was set up by a Cabinet resolution in 2003 and put under the administrative control of the corporate affairs ministry and of late, has been entrusted with many high-profile cases such as the Satyam scam or the more recent Rs 800-crore Reebok fraud.