SFIO was set up by the Government of India vide Resolution No. 45011/16/2003-Admn.I dated 02.07.2003 and was notified under sub-section (1) of Section 211 of the Companies Act, 2013, vide Government of India, Gazette Notification No. S.O.2005 (E) dated 21.07.2015. It is a multi-disciplinary organization under the Ministry of Corporate Affairs, of experts in the field of accountancy, forensic auditing, law, information technology, investigation, company law, capital market, banking and taxation, etc., for detecting and prosecuting or recommending for prosecution of crimes/frauds.
SFIO is headed by a Director as Head of Department who is not below the rank of Joint Secretary to the Government of India. The Director is assisted by Additional Directors, Joint Directors, Deputy Directors, Senior Assistant Directors, Assistant Directors, Senior Prosecutors, Prosecutors, and other secretarial staff. The Head Quarter of SFIO is at New Delhi, with five Regional Offices at Mumbai, New Delhi, Chennai, Hyderabad & Kolkata.
Investigation into the affairs of a company is assigned to SFIO, where the Government is of the opinion that it is necessary to investigate into the affairs of a company –
a. On receipt of a report of the Registrar or Inspector under Section 208 of the Companies Act, 2013;
b. On intimation of a special resolution passed by a company that its affairs are required to be investigated;
c. In the public interest; or
d. On request from any department of the Central Government or a State Government.