To detect financial frauds, the SFIO is in the process of developing an early warning system (EWS), and a consulting agency has been engaged to prepare the conceptual framework, the government said.
The Serious Fraud Investigation Office (SFIO) is a fraud-investigating agency. It is under the jurisdiction of the Ministry of Corporate Affairs, Government of India. The SFIO is involved in major fraud probes and is the coordinating agency with the Income Tax and CBI.
Composition: It is a multi-disciplinary organization having experts from the financial sector, capital market, accountancy, forensic audit, taxation, law, information technology, company law, customs and investigation. These experts have been taken from various organizations like banks, Securities and Exchange Board of India, Comptroller and Auditor General and concerned organizations and departments of the Government.
Background: The Government approved setting up of this organization on 9 January 2003 on the basis of the recommendations made by the Naresh Chandra Committee which was set up by the Government on 21 August 2002 on corporate governance.