Press Information Bureau

Government of India

Ministry of Corporate Affairs

13-August-2012 17:58 IST

Activities of ROC and SFIO

The ROC and Serious Fraud Investigation Office (SFIO) are not engaged in similar work. ROCs primarily work as Registrar/Regulators for administration of the various provisions of the Companies Act, 1956 and SFIO is responsible for investigation of serious nature of financial irregularities/frauds committed by companies, entrusted to it by the Central Government.

There are no statutory powers given to Serious Fraud Investigation Office under Companies Act, 1956, however Central Government can appoint an Inspector for investigation of serious frauds/financial irregularities by the companies.

The government has no proposal to dissolve SFIO since there is no duplication of work with the ROCs.

This information was given by Minister of State for Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Rajya Sabha today.

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ST

Role differentiation between Registrar and fraud investigator affirms separate mandates and central power to appoint inspectors for fraud probes. ROC functions as registrars/regulators under the Companies Act, 1956, while SFIO investigates serious financial irregularities and frauds in companies when entrusted by the Central Government. SFIO has no separate statutory powers under the Companies Act; the Central Government can appoint an Inspector to investigate serious frauds. There is no functional duplication justifying dissolution of SFIO, and no proposal exists to dissolve it.