Section 211 of Companies Act 2013: Establishment of Serious Fraud Investigation Office
Section 211 of the Companies Act, 2013 provides the statutory framework for establishing the Serious Fraud Investigation Office (SFIO), a specialised and multi-disciplinary office of the Central Government for investigating frauds relating to companies.
Law and official-resource references reviewed on 17 September 2026.
Meaning and purpose of Section 211
Section 211 is contained in Chapter XIV of the Companies Act, 2013, which deals with inspection, inquiry and investigation. The provision gives statutory recognition to the SFIO and sets out its organisational structure. The SFIO is intended to provide multi-disciplinary expertise for complex corporate-fraud investigations.
The SFIO had originally been set up by Government of India Resolution No. 45011/16/2003-Admn.I dated 2 July 2003. The Central Government subsequently established the SFIO under Section 211(1) through Gazette Notification S.O. 2005(E) dated 21 July 2015.
Section 211 - statutory provisions
Section 211(1): Establishment of SFIO
The Central Government shall, by notification, establish an office called the Serious Fraud Investigation Office to investigate frauds relating to a company.
The proviso recognises the SFIO earlier set up under the Government of India Resolution dated 2 July 2003 as the SFIO for the purpose of Section 211 until establishment under sub-section (1).
Section 211(2): Director and multi-disciplinary experts
The SFIO shall be headed by a Director and shall consist of experts appointed by the Central Government from among persons having ability, integrity and experience in the following fields:
- banking;
- corporate affairs;
- taxation;
- forensic audit;
- capital market;
- information technology;
- law; and
- such other fields as may be prescribed.
Section 211(3): Appointment and rank of Director
The Central Government shall appoint the Director by notification. The Director must be an officer not below the rank of Joint Secretary to the Government of India and must have knowledge and experience in matters relating to corporate affairs.
Section 211(4): Experts, officers and employees
The Central Government may appoint such experts, officers and employees in the SFIO as it considers necessary for efficient discharge of the functions of the Office under the Companies Act, 2013.
Section 211(5): Service conditions
The terms and conditions of service of the Director, experts, officers and employees of the SFIO are to be prescribed. The relevant subordinate legislation includes the Companies (Inspection, Investigation and Inquiry) Rules, 2014.
Section 211 at a glance
| Provision | Subject | Key point |
|---|---|---|
| Section 211(1) | Establishment | Central Government establishes SFIO by notification to investigate company-related frauds. |
| Section 211(2) | Composition | SFIO is headed by a Director and supported by experts from specified professional fields. |
| Section 211(3) | Director | Director is appointed by notification and must be at least of Joint Secretary rank with relevant experience. |
| Section 211(4) | Staff | Central Government may appoint experts, officers and employees necessary for SFIO functions. |
| Section 211(5) | Service conditions | Terms and conditions of service are prescribed by rules. |
How Section 211 relates to Section 212
Section 211 primarily creates and structures the SFIO. The actual assignment and conduct of an investigation into the affairs of a company by the SFIO is principally governed by Section 212 of the Companies Act, 2013. Under Section 212(1), the Central Government may assign an investigation to the SFIO in the circumstances specified in that provision, including on receipt of a report under Section 208, on intimation of a special resolution, in the public interest, or on a request from a Central or State Government department.
Why the SFIO is multi-disciplinary
Corporate fraud may involve accounting records, financial transactions, taxation, securities markets, digital evidence and legal issues at the same time. Section 211(2) therefore expressly provides for experts from multiple fields rather than constituting the SFIO solely as a conventional investigative body.
Official legal resources
For the current statutory text and official information, readers may consult the India Code portal, the Ministry of Corporate Affairs, and the official SFIO website. The official SFIO material records that the Office was notified under Section 211(1) on 21 July 2015 and operates as a multi-disciplinary organisation under the Ministry of Corporate Affairs.