Rules 1 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Companies (Inspection, Investigation and Inquiry) Rules, 2014 are a short set of six rules. They let the Central Government appoint experts for the Serious Fraud Investigation Office (SFIO), set the terms of service of its staff, fix the security an applicant may be asked to give before an inspector is appointed, and say how a letter of request under section 217 is sent. They are stated as amended up to the rules as notified, with no amendment listed by MCA, per the MCA e-book; later amendments should be checked.
The Central Government may appoint experts in investigations, cyber forensics, financial, management and cost accounting and other fields for SFIO. Before appointing an inspector under section 210(3), it may ask the applicant for security not exceeding twenty-five thousand rupees, set by the company's turnover in three bands. The security is refunded if the investigation results in prosecution. A letter of request under section 217 is sent in the manner the Ministry of Corporate Affairs specifies.
Where these rules sit
For the Act's text, see Sections 206–212: inspection, investigation and SFIO, Sections 213–229: miscellaneous provisions and Section 217: procedure and powers of inspectors. The Rules were made under sections 210(3), 211(2), 211(5), 214 and 217(11), read with section 469. The arrest rules for SFIO officers are separate; see Rules 1–9 of the SFIO Arrest Rules, 2017.
If your company has received an investigation order or notice, or you are considering applying for an investigation, talk to us about a legal consultation before you respond.
Rule 1: short title and commencement
The rules may be called the Companies (Inspection, Investigation and Inquiry) Rules, 2014. They came into force on 1 April 2014. They were made in supersession of the Companies (Central Government's) General Rules and Forms, 1956 and any other relevant rules under the Companies Act, 1956 on the matters they cover, except for things done or omitted before the supersession.
Rule 2: definitions
2(1) defines "Act" (the Companies Act, 2013), "Annexure", "Fees" (as specified in the Companies (Registration Offices and Fees) Rules, 2014), "Form" or "e form" (a form in the Annexure to be used for the matter it relates to), "Regional Director" and "section". 2(2) says words not defined here but defined in the Act or the Companies (Specification of Definitions Details) Rules, 2014 carry the same meanings.
Rule 3: persons having expertise
The Central Government may appoint persons having expertise in:
- investigations,
- cyber forensics,
- financial accounting,
- management accounting,
- cost accounting, and
- any other field necessary for the efficient discharge of the SFIO's functions under the Act.
Rule 4: terms and conditions of service
The terms of service of the Director, experts and other officers and employees of the SFIO under section 211(5) are:
- (a) the Director's appointment is governed by the deputation rules under the Central Staffing Scheme of the Government of India;
- (b) experts from the Central Government, a State or Union territory Government, a Public Sector Undertaking, an autonomous body or other organisations are governed by recruitment rules duly notified by the Central Government under article 309 of the Constitution of India;
- (c) other officers and employees from those bodies are likewise governed by recruitment rules notified under article 309; and
- (d) the Central Government may appoint experts, consultants or other professionals or firms on a contractual basis, under a scheme of engagement it has approved.
Rule 5: security
5(1). Before appointing an inspector under section 210(3), the Central Government may require the applicant to give security not exceeding twenty-five thousand rupees for the costs and expenses of investigation, by the following criteria, based on turnover as per the previous year's balance sheet:
| Turnover as per previous year balance sheet | Amount of security |
|---|---|
| Up to fifty crore rupees | Ten thousand rupees |
| More than fifty crore rupees and up to two hundred crore rupees | Fifteen thousand rupees |
| More than two hundred crore rupees | Twenty-five thousand rupees |
5(2). The security is refunded to the applicant if the investigation results in prosecution. The rule says nothing about what happens to the security if the investigation does not lead to prosecution, so that point is not settled by the rule's text.
The rule says "may require", so it is for the Central Government to ask. It also names the applicant, not the company under investigation, as the one giving security.
Rule 6: letter of request under section 217
The letter of request is transmitted in the manner specified by the Ministry of Corporate Affairs. The rule does not set out the manner itself, a time limit or a form; those come from the Ministry's specification. For what the section provides about the procedure and powers of inspectors, read Section 217 of the Companies Act, 2013.
Example. Prakash Exports Pvt Ltd, an applicant, applies for an investigation into Meridian Steels Ltd, whose turnover as per its previous year's balance sheet is two hundred and fifty crore rupees. Before appointing an inspector under section 210(3), the Central Government asks the applicant for security. Rule 5 puts Meridian in the top band, so the security may be up to twenty-five thousand rupees. If the investigation later leads to prosecution, the security is refunded to the applicant.
Rules at a glance
| Rule | Subject | What it provides | Amount, period or form as printed |
|---|---|---|---|
| 1 | Short title | Companies (Inspection, Investigation and Inquiry) Rules, 2014; in force 1 April 2014 | 1 April 2014 |
| 2 | Definitions | Act, Annexure, Fees, Form, Regional Director, section | None |
| 3 | Experts | Appointment of experts in investigations, cyber forensics, financial, management and cost accounting and other fields | None |
| 4 | Terms of service | Deputation rules for the Director; article 309 recruitment rules for others; contractual engagement | None |
| 5 | Security | Security for investigation by turnover band; refund on prosecution | Ten thousand, fifteen thousand or twenty-five thousand rupees |
| 6 | Letter of request | Transmitted as the Ministry specifies | None |
Need help with an investigation or inspection?
An investigation order, a request for documents or a letter of request can raise difficult questions of timing and privilege. Our team can help you understand your position and respond with care. A legal consultation is a good first step.
Key takeaways
- The Central Government may appoint experts in investigation, cyber forensics and accounting fields for SFIO.
- The Director's terms follow the Central Staffing Scheme's deputation rules; experts and staff follow notified recruitment rules, and contract engagement is allowed.
- Security for an investigation is capped at twenty-five thousand rupees and depends on turnover in three bands.
- The security is refunded if the investigation results in prosecution.
- Letters of request under section 217 go in the manner the Ministry specifies.
Read next
- Rules 1–9 of the SFIO Arrest Rules, 2017
- Rules 1, 2, 3 and 3A of the Adjudication of Penalties Rules
- Sections 206–212: inspection, investigation and SFIO
- SFIO investigation: when and how the Central Government orders it
Disclaimer: Based on the Companies Act, 2013 rules named above as consolidated in the MCA e-book (consulted on 3 October 2026), with the later notifications the article names. Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.