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Role of Serious Fraud Investigation Office (Sfio)

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AD VALOREM - Volume 1, Issue III, July-September – 2014, ISSN : 2348-5485

69

Role of Serious Fraud Investigation Office (SFIO) in Protection of Investor’s Interest: An Overview
Radheshyam Prasad & Prof. (Dr.) Tabrez Ahmad I-Introduction A Company is basically a form of business organization and it runs according to the business traits and commercial practices. Being a sub system of the economic-social system operating in the society, it affects and is affected by the economic and cultures of the society. The concept of social responsibilities of companies is now so widely accepted that it is rare to bear any view expressed to contrary. Even those who stoutly defend company’s primary object to make profits agree that the profit-making should be pursued in a socially responsible way, by which they usually mean that it should be done for the well being of their employees giving due regards to public, its shareholders and keeping paramount also the national interest. The Companies Act 2013, guarantees several rights to investors and also regulates the affairs of a company with a view to ensure efficient functioning of a company so that investors may receive their due returns of the capital invested by them and their rights and interests are adequately protected. Investors are the real owners of a company but the power of management of the company is vested in the Board of Directors. There are chances to abuse of power like committing fraud, by few directors of the company. As we know that there is close nexus between corporate governance and ethics but conflicts between these two are also bound to occur. Corporate fraud, an inevitable incident occurring, in recent, is an aggravated form of corruption in corporate world. It is difficult to prevent and to catch such white collar crimes. Such incidents reduce the interest and trust in corporate investments and in...

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