Fraud cell gets probe mandate

 The department has already identified the first batch of cases that the SFIO will investigate. These will include the corporate fraud cases of the Ketan Parekh group, DSQ Software and Cyberspace Infosys.

 The office, headed by OP Arya, has eight advisers, who are experts in taxation, forensic auditing, law and capital markets, along with a team of investigators.

 The SFIO has not been given prosecution powers and will forward its investigation reports to the Department of Company Affairs for cases of violations under the Companies Act, 1956, while breaches under other acts will be referred to the respective agencies. It can also outsource investigations to outside agencies.

 The SFIO will initially have two regional offices for the northern and western regions.

 A co-ordination committee will be formed to supervise the work of the office. It will be headed by the Department of Company Affairs Secretary and have the Securities and Exchange Board of India chairman, chairpersons of the Central Board of Direct Taxes and directors of the Central Bureau of Investigation and SFIO as its members.

 An empowered committee of secretaries, headed by the Cabinet Secretary, will instruct the SFIO in the efficient discharge of duties as and when required.

 The committee will also have secretaries in charge of company affairs, revenue, expenditure and personnel as members.