The government is “seriously engaged” in dealing with serious frauds committed by companies,stock brokers and sub-brokers in the corporate sector,the Lok Sabha was informed today.
Corporate Affairs Minister M Veerappa Moily said during Question Hour that the Serious Fraud Investigation Office (SFIO) has established Market Research and Analysis Unit to deal with frauds committed by brokers and sub-brokers.
“The ministry is seriously engaging with this matter and a number of measures have been taken,” Moily said.
He said around 32,000 companies have adopted guidelines issued by the ministry and the Serious Fraud Investigation Office. This will help the SFIO to deal with the menace in a more effective manner.
“During the last three years – 2009-10,2010-11 and 2011-12 – SFIO has handled 50 cases out of which investigation has been completed in 45 cases…. During these years prosecution have been filed against 15 companies and 186 individuals,” he said.
Moily maintained that the Market Research and Analysis Unit is looking deeper into cases of frauds committed by brokers,and especially sub-brokers,who were found to be engaging in such activities more frequently.
Regional offices of SFIO are functional at Mumbai,Chennai and New Delhi.