The jurisdiction of Companies Act, 1956 under which the SFIO is functioning is restricted to the territory of India. Investigation regarding diversion of funds outside the country, is being carried on by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) for which they have the requisite powers. This was stated by Minister of State for Corporate Affairs, Shri R.P.N. Singh while replying to a question in Rajya Sabha yesterday.

Jurisdictional limitation: Companies Act applies within national territory, while cross-border fund diversion is investigated by other agencies. The investigatory authority under the Companies Act is confined to the national territory; SFIO operates within that territorial scope and lacks extraterritorial reach, while diversion of funds outside the country is investigated by other law enforcement agencies possessing the requisite powers.